| Biomass Producer or Collector Tax Credits |
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The 2007 Oregon Legislature passed House Bill 2210 which provides- Oregon businesses with tax credits to support the production, collection and use of biomass and biofuels to improve Oregon’s environment, economy and energy resource diversity. The Oregon Department of Energy published the advisory, linked below in the right column, with details of the biomass producer and collector income tax credits. These credits may be claimed for activities conducted during 2007. This is a taxpayer administered income tax credit. The text of the statute is the most specific authority for properly claiming the credit.
BACKGROUND AND SUMMARY:
The 74th Oregon Legislature passed House Bill 2210 during the 2007 regular session. Producers or collectors of Oregon sourced biomass or energy crops, used for energy production in Oregon, are eligible for tax credit incentives based upon the volume of production or collection. Producers of neat ethanol or pure bio-oils, from Oregon feedstock, are also eligible for tax credits.
WHAT ARE THE CREDITS FOR?
The credits provided for under House Bill 2210 are:
- oil seed crops, $0.05 per pound, and
- grain crops, including but not limited to wheat, barley and triticale, $0.90 per bushel
- grains do not include corn, and wheat is eligible only after 1 January 2009, and
- virgin oil or alcohol from Oregon-based feedstock, $0.10 per gallon, and
- used cooking oil or waste grease, $0.10 per gallon, and
- wastewater biosolids, $10.00 per wet ton, and
- and woody biomass collected from nursery, orchard, agricultural, forest or rangeland property in Oregon, including but not limited to prunings, thinning, plantation rotations, log landing or slash resulting from harvest or forest health stewardship, $10.00 per green ton, and
- grass, wheat, straw or other vegetative biomass from agricultural crops, $10.00 per green ton, and
- yard debris and municipally generated food waste, $5.00 per wet ton, and
- animal manure or rendering offal, $5.00 per wet ton.
WHO CAN GET A TAX CREDIT?
An Agricultural producer or a biomass collector that is operates as a trade or business that pay taxes for a business site in Oregon are eligible for the tax credit.
The business, its partners or its shareholders may use the credit.The applicant must be the producer or collector of the biomass in Oregon that is delivered to a bioenergy facility in Oregon for use as a energy fuel. An Agricultural producer means a person that produces biomass that is used in Oregon as biofuel or to produce biofuel. A biomass collector means a person that collects biomass to be used in Oregon as biofuel or to produce biofuel.
The producer or collector also can be an Oregon non-profit organization, tribe or public entity that partners with an Oregon business or resident who has an Oregon tax liability. This can be done using the transfer form to allocate the credit to another party that pays Oregon income tax.
HOW DO I CLAIM THE TAX CREDIT?
The biomass producers and collectors tax credit is a taxpayer administered incentive.
The following is considered appropriate documentation necessary to meet statutory standards for transacting a biomass for use as energy or biofuel, and subsequently claiming a tax credit. The biomass production or collection credit is claimed on one's tax form for the year the biomass was sold. Appropriate documentation and record keeping is required.
Records are required to be held for five years following the claim (not collection). Eligible biomass is required to be produced and collected in Oregon for use as a biofuel produced in Oregon. A receipt for delivery or sale of the qualifying biomass would document the necessary information if it contained:
- the name address and of the producer or collector of the biomass, and
- location of production and collection of the biomass (street or road address, or forest unit, and county) and
- the type of biomass (grain, seed oil, manure…), and
- the amount of biomass in the appropriate quantity (tons, pounds, bushels, gallons …), and
- receiver of the biomass, and
- location of the biofuel energy use of the biomass, and
- a signed declaration that the receiver will put the feedstock to biofuel or energy use in Oregon.
Records justifying the claim of a tax credit are required to be recorded and documented by the taxpayer claiming the credit. Records of these attributes of the taxpayer, source, biomass feedstock collection, type, use, or transfer of credit are required to be retained for five years.
FOR MORE DETAILED INFORMATION
Please read the advisory linked in the right-hand column.
For more information or interpretation of the information contained on this web page or in the attached advisory contact
The Corporate Tax Division of the Oregon Department of Revenue at 800-356-4222, or Mark Kendall at the Oregon Department of Energy, 800-221-8035.
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Biomass Producer and Collector Income Tax Credit Advisory
(Effective December 1, 2007)
Tax Credit Transfer Form For Biomass Producer or Collector Income Tax Credit
 Text of House Bill 2210 Enrolled |
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