Advanced Biofuels Tax Credit

July 13, 2021

Summary

This industry recruitment incentive provides a 30% credit for the cost of buildings, equipment and intellectual property necessary to produce advanced biofuels, including ethanol or methanol and/or their derivatives. The credit is intended to offset the first $50,000 of income tax liability arising during the credit year and 50% of any remaining income tax liability for the year. Any unused credit may be carried forward for a maximum of 14 taxable years after the credit year in which the credit originated. Legislation enacted in 1999 revised previous biotechnology legislation enacted in 1997 that provided credits for employee training and higher education partnerships (30%) and biotechnology research (20%). According to the code, biotechnology means "the uses of biochemistry, molecular biology, genetics, and bioengineering to meet the needs of agriculture, aquaculture, forestry, energy, and environmental industries."