| Biodiesel production, distribution, and use, as with many | | | | as a fuel;othe biodiesel production company sells the |
| emerging alternative energies, has been aided in large | | | | biodiesel retail which is then used in the fuel tank of the |
| part by recent government incentives making biodiesel | | | | buyer. |
| fuel production and distribution more attractive. These | | | | The tax credits on Straight Biodiesel are equal to $1 |
| tax incentives put money back in the pockets of | | | | per gallon of agri-biodiesel and $0.50 per gallon of |
| biodiesel producers who, presumably, pass the benefits | | | | waste grease biodiesel. The tax credits on Biodiesel |
| on to you, the consumer, with lower biodiesel prices. | | | | Mixtures are $0.01 (a penny) per percentage point of |
| Not just any biodiesel is eligible for tax incentives. The | | | | agri-biodiesel and $0.005 (half-a-cent) per percentage |
| definition of biodiesel fuel, as its used for tax purposes, | | | | point of waste grease biodiesel. |
| is monoalkyl esters of long chain fatty acids. Biodiesel | | | | That is, unless the amount of credit approved to |
| production companies seeking any of these credits | | | | taxpaying biodiesel companies applying for the credit in |
| must ensure that they are making biodiesel fuel that | | | | a given year exceeds the annual cap of $1.5 million, in |
| meets the Environmental Protection Agency (EPA) | | | | which case the Department of Revenue will prorate |
| requirements for registration of fuels and fuel additives | | | | credits to biodiesel production companies accordingly. |
| as described in the Clean Air Act, as well as | | | | These tax credits, however, are currently temporary, |
| requirements put forth by the American Society of | | | | and set to expire in 2008 an added incentive to get |
| Testing and Materials. | | | | started now on that biodiesel production company of |
| All companies, whether a biodiesel production | | | | your own that youve been dreaming about. Theres |
| company or not, that are selling or using biodiesel may | | | | literally no time to waste. |
| qualify for the Biodiesel and Ethanol (VEETC) Tax | | | | Another Federal Tax Credit, the Small Agri-Biodiesel |
| Credit, on their income taxes. There are two such | | | | Producer Credit (Section 1345: Energy Policy Act of |
| types of credit.the Straight Biodiesel Credit (considered | | | | 2005), grants $0.10 per gallon on up to 15 million gallons |
| a general business credit by the IRS) the biodiesel in | | | | to small agri-biodiesel production facilities producing less |
| question must not have been mixed with any | | | | than 60 million gallons per year. |
| petroleum-based diesel fuel, and the company itself | | | | Incidentally, there are local and state tax credits all over |
| must be the biodiesel production company making it;the | | | | the country available on biodiesel cost and costs on |
| Biodiesel Mixture Credit the biodiesel in question must | | | | other alternative fuels. Visit: to find out what your |
| contain only biodiesel fuel and petroleum-based diesel, | | | | locality offers. |
| with absolutely no kerosene added, and the company | | | | According to recent U.S. Department of Agriculture |
| itself must be the biodiesel production company making | | | | (USDA) study, demand for biodiesel production is set |
| it. | | | | to increase by at least 124 million gallons per year, |
| Additionally, for either tax credit on biodiesel cost, one | | | | however fears about the rapidly rising prices of crude |
| of the following criteria must also be met;othe biodiesel | | | | oil suggest that facilities might be making biodiesel fuel |
| production company actually uses the biodiesel itself | | | | in even larger amounts and at an even faster rate. |