Page 65 - Inflation-Reduction-Act-Guidebook

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Extension of Second-Generation Biofuel Incentives

Federal Agency: Department of the Treasury

IRA Statutory Location: 13202

Tax Code Location: 26 U.S. Code § 40

Tax Provision Description: To provide an income tax credit for second-generation biofuel
production.

Period of Availability: Through 12/31/24

Tax Mechanism: Income tax credit (general business credit, nonrefundable)

New or Modified Provision: Extended from 12/31/2021 through 12/31/2024.

Eligible Recipients: Registered producers of second-generation biofuels

Tribal Eligibility: No

Base Credit Amount: $1.01 per gallon

Bonus Credit Amount: N/A

Direct Pay Eligibility: No

Transferability: No

Stackability: Fuel eligible for the section 40 credit is not eligible for the credits under section
40A/6426.

60 B U IL D IN G A C L E A N E N E R G Y E C O N O MY
G U ID E B O O K | J AN UARY 20 2 3 | VE RS I O N 2