### Question
How does CREDITS AGAINST TAX define second generation biofuel?


### Answer
Under *26 U.S.C. § 40*, **second generation biofuel** is defined as:

> any liquid fuel which—


(I) is derived by, or from, qualified feedstocks, and


(II) meets the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act (42 U.S.C. 7545)

#### Citation:
  - *26 U.S.C. § 40*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart D-Business Related Credits**

