The Biodiesel Tax Credit BTC is essential to continued growth of the US.

What is the biodiesel tax credit. Re-blending of blended biodiesel does not qualify for the tax credit. The current legislation has this tax credit set to expire after 12312020 unless Congress extends the date again. If you become a.

The extension part of a massive government spending bill signed by President Donald Trump on Dec. Taxpayers are able to claim both 2018 and 2019 on a single form outside of the tax. The credit began in 2005 as a way to help farmers and reduce petroleum imports by supporting biofuels.

The tax credit supports higher levels of biodiesel and renewable diesel consumption by offsetting the higher cost of these fuels relative to petroleum-based diesel fuel. In years when the tax credit was in effect during the time of production ie not applied retroactively such as in 2013 and in 2016 domestic production and foreign imports of biodiesel increased significantly relative to the. The tax credit has expired four times since 2009 and then subsequently reinstated retroactively three times.

A taxpayer that delivers pure unblended biodiesel B100 into the tank of a vehicle or uses B100 as an on-road fuel in their trade or business may be eligible for an incentive in the amount of 100 per gallon of biodiesel agri-biodiesel or renewable diesel. The biodiesel tax credit allows qualified biodiesel producers or blenders an income tax credit of 100 per gallon of pure biodiesel or renewable diesel produced or used in the blending process. Hundreds of jobs are threatened if Congress fails to extend this tax credit said Jamie Butts OSA executive director.

For example Ohios soybean farmers - who are responsible for growing the. Qualified biodiesel producers or blenders are eligible for an income tax credit of 100 per gallon of pure biodiesel B100 or renewable diesel produced or used in the blending process. Among the myriad measures included in the proposal is a multiyear extension of the biodiesel tax credit Section 201 which would keep the incentive at its current rate of 1 per gallon for 2018 through 2021 reducing it to 75 cents per gallon in 2023 50 cents in 2023 and 33 cents in 2024 after which it would expire.

Whats even more beneficial about the Biodiesel and Alternative Fuels tax credit is that the IRS simplified the reporting for the expired credit. Fuel blenders to market biodiesel and renewable diesel providing a credit of 1 per gallon against their US. Its a large cash back-payment.