Senator Nelson Wants Tax Break for Algae Biofuel Companies

Algae/Other Aquatic Organisms/Seaweed, BioRefineries/Renewable Fuel Production, Business News/Analysis, Federal Legislation, Florida, Funding/Financing/Investing

October 26, 2010

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by Eric Staats (NaplesNews.com) …Today, growing algae to turn into biofuel is serious business, and (US Senator Bill) Nelson wants to give the fledgling industry a tax break.

Nelson, D-Fla., toured the headquarters and research labs of Algenol Biofuels off Alico Road in south Lee County on Monday morning to showcase his plan.

The $1-per-gallon tax credit and a related proposal to allow algae biofuel companies to speed up their tax write offs for biofuel plant property would cost an estimated $500,000 before it expires in 2013, according to congressional estimates.

Algenol executives said the value of Nelson’s bill goes beyond the relatively meager tax break dollars. “It’s the signal it sends to Wall Street,” Algenol CEO Paul Woods said.

Nelson’s bill gives algae-based fuel producers the same tax advantages already enjoyed by companies that produce biofuels using corn or wood, so-called cellulosic biofuel. That puts the two types of biofuel on a level playing field that matters when it comes to attracting financing for projects to take algae-based biofuels from the laboratory to market, Woods said. READ MORE and MORE (Algae Industry Magazine)

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