Biotane Updates

08/09/05: President Bush Signed Into Law The Energy Bill

Yesterday President Bush signed into law the Energy Bill, which includes an extension of the biodiesel tax credit through 2008. The biodiesel tax credit allows a $1 per gallon tax credit for agri-biodiesel and a $0.50 per gallon tax credit for biodiesel. Agri-biodiesel is biodiesel made from first-use vegetable oil or animal fats.

The tax credit can be taken in one of two ways, either as an excise tax credit by the blender-of-record or as an income tax credit by the user. The blender-of-record is the registered company that blends biodiesel with petroleum diesel. The person who claims the tax credit must have a Certificate of Origin from the biodiesel producer. That producer must be registered with the IRS as a biodiesel producer. Consult your tax professional, or the IRS, for details on how to claim the credit.