A second generation biofuel production plant placed into service between December 31, 2017, and December 31, 2020, may be eligible for an additional depreciation tax deduction allowance equal to 50% of the adjusted basis of the property.
US Internal Revenue Service (IRS); US Department of Energy (DOE)
Terms and Qualifications
The plant must be solely used to produce second generation biofuel and is only eligible for the depreciation allowance for the first year in operation. Second generation biofuel is defined as liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable basis or any cultivated algae, cyanobacteria, or lemna.
See program website for expiration dates.