To amend the Internal Revenue Code of 1986 to provide for a credit for algae derived fuels, and for other purposes.

Amends the Internal Revenue Code to allow an income and excise tax credit for the production of algae derived fuel and fuel mixtures. Defines "algae derived fuel" as a liquid hydrocarbon product that is derived from the biomass of algal organisms (single- or multi-cellular organisms that are inherently photosynthetic and aquatic). Terminates such credits after 2012.