Agency: Department of the Treasury
Description:
$1.01/gallon tax credit for production of cellulosic based biofuel.
Bill Section:
13202
US Code:
26 USC 40
New or Existing:
Existing
Potential Cost:
$540,000,000
Timeline:
Calendar years 2022-2024 (2022 is retroactive). Cost projection is for FY23-25.
TCS Notes:
The cellulosic biofuel industry was intended to spur development of non-food-based biofuels derived from feedstocks such as perennial grasses and corn cobs/leaves, but the industry has largely failed to get off the ground despite significant taxpayer funding for projects that later failed. This is duplicative of RFS which mandates U.S. biofuel consumption. There are also no GHG emission reduction requirements.