Cellulosic (Second Generation Biofuel) Production Tax Credit


Energy - Alternative

Subsidy Type

Tax Expenditure

Committees of Jurisdiction

House Committee on Ways and Means, Senate Finance Committee

$16 FY 22 Budget Score (in mil.)
$160 FY 22-31 Budget Score (in mil.)

Established by the Food, Conservation, and Energy Act of 2008, the Cellulosic Production Tax Credit is a credit of up to $1.01/gallon for “liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable basis or any cultivated algae, cyanobacteria, or lemna.” Lignocellulose and hemicellulose are both components of the cell walls of plants. The Consolidated Appropriations Act of FY2021 extended this credit.

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