Second Generation Biofuel Production Property Depreciation Allowance

This incentive expired December 31, 2016, but will remain posted until the federal tax filing deadline.

An owner of a second generation biofuel production plant may be eligible for a 50% special depreciation allowance to recover the cost of qualified property. To be eligible, the plant must function solely for the purpose of second generation biofuel production, be put into service by the current owner after December 20, 2006, and before January 1, 2017, and produce fuel that meets the U.S. Environmental Protection Agency fuel and fuel additive registration requirements. 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. For more information about claiming the incentive, see IRS Form 4562, which is available on the IRS Forms and Publications website. (Reference Public Law 114-113 and 26 U.S. Code 168)

Point of Contact
U.S. Internal Revenue Service
Phone: (800) 829-1040

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