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A biodiesel tax credit allows petroleum distributors to claim a tax credit by producing biodiesel blend fuels. This tax credit approximately equalizes the cost of producing biodiesel fuel blends and traditional diesel fuel.
What Counts as Biodiesel
Any petroleum producer that completes IRS registration of its biodiesel fuel blend is eligible for the biodiesel tax credit. Biodiesel blends include:
Producing biodiesel fuel blends is an incredibly beneficial first step for petroleum producers deciding to go green. Besides helping the environment, petroleum producers who offer biodiesel fuel blends will see the following benefits:
What Counts as Biodiesel
Any petroleum producer that completes IRS registration of its biodiesel fuel blend is eligible for the biodiesel tax credit. Biodiesel blends include:
- Virgin oils (agro-biodiesel) - Agro-biodiesel oils are derived from agricultural crops such as flaxseeds, sunflower seeds, rice bran, cottonseeds, corn, soybeans, crambe, canola, safflowers, mustard seeds, and animal fats.
Producing biodiesel fuel blends is an incredibly beneficial first step for petroleum producers deciding to go green. Besides helping the environment, petroleum producers who offer biodiesel fuel blends will see the following benefits:
- little loss in profit - The point of the biodiesel tax credit is to save petroleum producers the difference or nearly the entire difference of the cost of producing biodiesel blend and regular diesel fuels.
- create jobs - If the current trends in biodiesel blend fuel production continue, as many as 50,000 new jobs could be created in the US within the next decade to keep up with demand.
- support American farmers - Five years of biodiesel tax credits can lead to as much as a $1 billion profit increase in the farming industry.
