Indiana bill aims to create tax credits to support sales of higher ethanol, biodiesel and renewable diesel blends
The Indiana Senate passed SB 254, a bill introducing tax credits for higher ethanol blends, biodiesel, and renewable diesel sales and blending. Retailers can receive up to 18 cents per gallon for biodiesel blends, while fuel blenders get 3.5 cents per gallon for in-state blending. Tax credits are capped at $10,000 per fiscal year.
The Indiana Senate on Feb. 10 voted 46 to 3 in favor of a bill that aims to create tax credits for the sale of higher ethanol blends, the sale of blended biodiesel or renewable diesel, and the blending of biodiesel and renewable diesel.
The legislation, SB 254, was introduced in the Senate on Jan. 13. The day after its Feb. 10 passage by the Senate, the bill was transferred to the House where it was referred to the Committee on Ways and Means.
The bill aims to create a tax credit of 5 cents per gallon of higher ethanol blends sold and dispensed by a retailer. Higher ethanol blends are defined as those containing 15% to 85% ethanol. The legislation caps the credit at $10,000 per fiscal year.
For biodiesel and renewable diesel, the legislation aims to create a 5-cent-per-gallon retailer tax credit for fuel blends containing between 5% and 10% biodiesel or renewable diesel. For fuel blends containing 10% to 20% biodiesel or renewable diesel, the credit would be increased to 10 cents per gallon. The credit would increase to 18 cent per gallon for fuels blends containing more than 20% biodiesel or renewable diesel.
Fuel blenders would be eligible to claim a tax credit of 3.5 cents per gallon of fuel blended with more than 5% biodiesel or renewable diesel at a terminal location within the state of Indiana. The biodiesel and renewable diesel tax credits would also be subject to a $10,000-per-fiscal-year cap.
To read more about Ethanol Industry & Bio Energy News, continue reading Agriinsite.com
Source : Ethanol Producer Magazine
