II 
Calendar No. 639 
111TH CONGRESS 
2D SESSION 
H. R. 4168 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 29, 2010 
Received; read the first time 
NOVEMBER 15, 2010 
Read the second time and placed on the calendar 
AN ACT 
To amend the Internal Revenue Code of 1986 to expand 
the definition of cellulosic biofuel to include algae-based 
biofuel for purposes of the cellulosic biofuel producer 
credit and the special allowance for cellulosic biofuel 
plant property. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Algae-based Renewable 
Fuel Promotion Act of 2010’’. 
SEC. 2. ALGAE TREATED AS A QUALIFIED FEEDSTOCK FOR 
PURPOSES OF THE CELLULOSIC BIOFUEL 
PRODUCER CREDIT, ETC. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
40(b)(6)(E)(i) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(I) is derived solely from quali-
fied feedstocks, and’’. 
(b) QUALIFIED FEEDSTOCK; SPECIAL RULES FOR 
ALGAE.—Paragraph (6) of section 40(b) of such Code is 
amended by redesignating subparagraphs (F), (G), and 
(H) as subparagraphs (H), (I), and (J), respectively, and 
by inserting after subparagraph (E) the following new 
subparagraphs: 
‘‘(F) QUALIFIED
FEEDSTOCK.—For pur-
poses of this paragraph, the term ‘qualified 
feedstock’ means— 
‘‘(i) 
any 
lignocellulosic 
or 
hemicellulosic matter that is available on a 
renewable or recurring basis, and 
‘‘(ii) 
any 
cultivated 
algae, 
cyanobacteria, or lemna. 
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‘‘(G) SPECIAL RULES FOR ALGAE.—In the 
case of fuel which is derived from feedstock de-
scribed in subparagraph (F)(ii) and which is 
sold by the taxpayer to another person for re-
fining by such other person into a fuel which 
meets 
the 
requirements 
of 
subparagraph 
(E)(i)(II)— 
‘‘(i) such sale shall be treated as de-
scribed in subparagraph (C)(i), 
‘‘(ii) such fuel shall be treated as 
meeting the requirements of subparagraph 
(E)(i)(II) in the hands of such taxpayer, 
and 
‘‘(iii) except as provided in this sub-
paragraph, such fuel (and any fuel derived 
from such fuel) shall not be taken into ac-
count under subparagraph (C) with respect 
to the taxpayer or any other person.’’. 
(c) ALGAE TREATED AS A QUALIFIED FEEDSTOCK 
FOR PURPOSES OF BONUS DEPRECIATION FOR BIOFUEL 
PLANT PROPERTY.— 
(1) IN GENERAL.—Subparagraph (A) of section 
168(l)(2) of such Code is amended by striking ‘‘sole-
ly to produce cellulosic biofuel’’ and inserting ‘‘solely 
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to produce second generation biofuel (as defined in 
section 40(b)(6)(E)’’. 
(2) CONFORMING
AMENDMENTS.—Subsection 
(l) of section 168 of such Code is amended— 
(A) by striking ‘‘cellulosic biofuel’’ each 
place it appears in the text thereof and insert-
ing ‘‘second generation biofuel’’, 
(B) by striking paragraph (3) and redesig-
nating paragraphs (4) through (8) as para-
graphs (3) through (7), respectively, 
(C) by striking ‘‘CELLULOSIC’’ in the 
heading of such subsection and inserting ‘‘SEC-
OND GENERATION’’, and 
(D) by striking ‘‘CELLULOSIC’’ in the head-
ing of paragraph (2) and inserting ‘‘SECOND 
GENERATION’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 40 of such Code, as amended by 
subsection (b), is amended— 
(A) by striking ‘‘cellulosic biofuel’’ each 
place it appears in the text thereof and insert-
ing ‘‘second generation biofuel’’, 
(B) by striking ‘‘CELLULOSIC’’ in the 
headings of subsections (b)(6), (b)(6)(E), and 
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(d)(3)(D) and inserting ‘‘SECOND
GENERA-
TION’’, and 
(C) by striking ‘‘CELLULOSIC’’ in the head-
ings 
of 
subsections 
(b)(6)(C), 
(b)(6)(D), 
(b)(6)(H), (d)(6), and (e)(3) and inserting 
‘‘SECOND GENERATION’’. 
(2) Clause (ii) of section 40(b)(6)(E) of such 
Code is amended by striking ‘‘Such term shall not’’ 
and inserting ‘‘The term ‘second generation biofuel’ 
shall not’’. 
(3) Paragraph (1) of section 4101(a) of such 
Code is amended by striking ‘‘cellulosic biofuel’’ and 
inserting ‘‘second generation biofuel’’. 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to fuels sold or used after the date of the 
enactment of this Act. 
(2) APPLICATION TO BONUS DEPRECIATION.— 
The amendments made by subsection (c) shall apply 
to property placed in service after the date of the en-
actment of this Act. 
SEC. 3. PAYGO COMPLIANCE. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
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shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
by the Chairman of the House Budget Committee, pro-
vided that such statement has been submitted prior to the 
vote on passage. 
Passed the House of Representatives September 28, 
2010. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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Calendar No. 639 
111TH CONGRESS 
2D SESSION 
H. R. 4168 
AN ACT 
To amend the Internal Revenue Code of 1986 to 
expand the definition of cellulosic biofuel to in-
clude algae-based biofuel for purposes of the cel-
lulosic biofuel producer credit and the special al-
lowance for cellulosic biofuel plant property. 
NOVEMBER 15, 2010 
Read the second time and placed on the calendar 
VerDate Mar 15 2010 
22:58 Nov 15, 2010
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