Biodiesel Tax Credits

BIODIESEL EXCISE TAX CREDIT

Administered by: Internal Revenue Service
Annual funding: N/A
Established: Calendar Year 2005 by §302 of the American Jobs Creation Act of 2004 and extended by §1344 of the Energy Policy Act of 2005
Scheduled termination: End of 2008
Description: Biodiesel producers (or producers of diesel/biodiesel blends) can claim a per gallon tax credit. The credit is valued at $1.00 per gallon of “agri-biodiesel” (biodiesel produced from new agricultural products such as soybean oil or animal fats), or 50 cents per gallon of biodiesel produced from other sources (e.g. recycled fryer grease).
Qualified applicant: Biodiesel producers and blenders
For more information: Additional information on IRS Publication 378: Fuel Tax Credits and Refunds may be found at http://www.irs.gov/publications/p378/index.html

SMALL PRODUCER BIODIESEL CREDIT

Administered by: Internal Revenue Service
Annual funding: N/A
Established: Calendar Year 2005 by §1345 of the Energy Policy Act of 2005
Scheduled termination: End of 2007
Description: An income tax credit for small producers of biodiesel. The biodiesel fuels credit for a taxable year is equal to the sum of a) the biodiesel mixture credit, plus b) the biodiesel credit, plus c) in the case of an eligible small agri-biodiesel producer, the small agri-biodiesel producer credit. The small agribiodiesel producer credit is 10 cents for each gallon of qualified agri biodiesel produced with a small agribiodiesel producer defined as one with an annual production capacity of no more than 60 million gallons. The small producer incentive applies only to 15 million gallons a year from each small producer. Agri-biodiesel production means any agri-biodiesel which during a taxable year is sold by such producer to another person to produce a mixture or for use by another person in trade or business or who sells at retail.
Qualified applicant: Biodiesel producers and blenders
For more information: Additional information on IRS Publication 378: Fuel Tax Credits and Refunds may be found at http://www.irs.gov/publications/p378/index.html

Back to Comprehensive Guide to Federal Biofuels Incentives


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Maria's Monday Memo To sign up for Maria's weekly newsletter, enter your email address: Search The Site	Constituent Services Biodiesel Tax Credits BIODIESEL EXCISE TAX CREDIT Administered by: Internal Revenue Service Annual funding: N/A Established: Calendar Year 2005 by §302 of the American Jobs Creation Act of 2004 and extended by §1344 of the Energy Policy Act of 2005 Scheduled termination: End of 2008 Description: Biodiesel producers (or producers of diesel/biodiesel blends) can claim a per gallon tax credit. The credit is valued at $1.00 per gallon of “agri-biodiesel” (biodiesel produced from new agricultural products such as soybean oil or animal fats), or 50 cents per gallon of biodiesel produced from other sources (e.g. recycled fryer grease). Qualified applicant: Biodiesel producers and blenders For more information: Additional information on IRS Publication 378: Fuel Tax Credits and Refunds may be found at http://www.irs.gov/publications/p378/index.html SMALL PRODUCER BIODIESEL CREDIT Administered by: Internal Revenue Service Annual funding: N/A Established: Calendar Year 2005 by §1345 of the Energy Policy Act of 2005 Scheduled termination: End of 2007 Description: An income tax credit for small producers of biodiesel. The biodiesel fuels credit for a taxable year is equal to the sum of a) the biodiesel mixture credit, plus b) the biodiesel credit, plus c) in the case of an eligible small agri-biodiesel producer, the small agri-biodiesel producer credit. The small agribiodiesel producer credit is 10 cents for each gallon of qualified agri biodiesel produced with a small agribiodiesel producer defined as one with an annual production capacity of no more than 60 million gallons. The small producer incentive applies only to 15 million gallons a year from each small producer. Agri-biodiesel production means any agri-biodiesel which during a taxable year is sold by such producer to another person to produce a mixture or for use by another person in trade or business or who sells at retail. Qualified applicant: Biodiesel producers and blenders For more information: Additional information on IRS Publication 378: Fuel Tax Credits and Refunds may be found at http://www.irs.gov/publications/p378/index.html Back to Comprehensive Guide to Federal Biofuels Incentives
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