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

$17 FY 23 Budget Score (in mil.)
$47 FY 23-32 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 Inflation Reduction Act of 2022 extended this credit through the end of 2024.

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