herbaceous feedstocks
Biomass Research and Development Initiative
Advanced Biofuel
That is not for corn. They are trying to develop an ethanol that is made from cocellulosic material like switchgrass, etc.
To me, a tax credit is essentially equivalent to a subsidy and the distinction between the two is mostly pedantic, having little economic content.
The bug they use is modified e.coli bacteria that converts 5 carbon sugars to ethanol. Currently, if there are other e.coli strains present, they take over and kill the modified strain. They are diligently working to strengthen the modified strain so that it can compete against and win against other bacteria. Then they will not need to preprocess the cellulose feed stock to kill the existing bacteria before fermentation. But therein lies the problem. When the modified bacteria is sufficiently robust, if it gets out into nature, it will begin to attack the trees and the grass and will have an extensive food supply with very little competition.
The greenest of technologies will denude the planet.