Van Hollen Introduces Second Generation Biofuel Producer Tax Credit Act

Press Release

Van Hollen Introduces Second Generation Biofuel Producer Tax Credit Act

Today Congressman Chris Van Hollen (D-MD) issued the following statement on the Second Generation Biofuel Producer Tax Credit Act of 2009. Congressman Van Hollen introduced the legislation yesterday to improve and enhance the existing cellulosic biofuel credit.

"The Second Generation Biofuel Producer Tax Credit Act will modernize the existing cellulosic biofuel tax credit while ensuring that taxpayers get the biggest bang for their renewable energy buck by making clear that only qualified, non-food feedstocks capable of powering America's energy future are able to claim the credit.

"In addition to supporting homegrown renewable energy, it is my hope that this legislation will be added to the Manager's Amendment for the House health care reform package making its way to the floor this week so that the savings generated by these improvements can help pay for health care for all Americans."

The Second Generation Biofuel Producer Tax Credit Act of 2009 (HR 3985) would:

* Peg the value of the second generation biofuel producer credit to the BTU content of the biofuel being produced.
* Expand the definition of non-food feedstocks eligible for the credit to include not just renewable cellulosic matter, but also "cultivated algae, cyanobacteria, or lemna."
* Exclude fuels co-processed with a fuel derived from a nonqualified feedstock from credit eligibility.
* Preclude the paper manufacturing by-product commonly known as "black liquor" from credit eligibility.

The Second Generation Biofuel Producer Tax Credit Act of 2009 is estimated to raise approximately $24 billion over ten years.

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