/// Guest post by contributor Jon Scharingson,
One of the attractive features of biodiesel blends is the economics. Many states have incentives in place that allow a credit against the taxpayer’s income or sales tax liability when biodiesel blends are sold. These credits or incentives can help add additional margin to your bottom line, thus helping to boost your travel center profits.
Following is a summary of state incentives available to fuel wholesalers and retailers. It’s important to work with your tax professional and fully understand how the incentive may affect your business. REG has a team of specialists who monitor state biodiesel policies and are on hand to help you navigate the application process.
Texas
The biodiesel or ethanol portion of blended fuel containing taxable diesel is exempt from the diesel fuel tax. The biodiesel must be clearly identified on the retail pump, storage tank, and sales invoice in order to be eligible for the exemption.
Iowa
Biodiesel retailers are eligible for a $0.045 retail tax credit per gallon of B5 and above blends.
Illinois
Biodiesel Tax Exemption: Biodiesel blends of B10 and higher are exempt from the state excise tax of 6.25% at the retailer in Illinois. With rack pricing of around $3.00/gallon for diesel fuel, this exemption is worth approximately 18.75 cents per gallon for Illinois retailers marketing B11 blends or higher. This legislation was recently extended in Illinois, and is on the books until December 31, 2018.
Michigan
Reduced Biofuels Tax: A tax of $0.12 per gallon is imposed on diesel fuel containing at least 5 percent biodiesel (B5). This is a $0.03 discount compared to the conventional diesel tax of $0.15 per gallon.
North Dakota
A licensed fuel supplier who blends biodiesel or green diesel with diesel fuel may claim an income tax credit of $0.05 per gallon for fuel containing at least 5 percent biodiesel or green diesel.
/// Read more guest posts on biodiesel posts here.
{Guest Post} Guest post provided by 黑料社区Chairman’s Circle member Jon Scharingson, . Renewable Energy Group® is a leading North American biodiesel producer with a nationwide distribution and logistics system. With more than 210 million gallons of owned/operated annual production capacity at biorefineries across the country, REG is a proven biodiesel partner in the distillate marketplace. Learn more about .
The opinions and advice given by guest post contributors are not necessarily those of 黑料社区Inc. The posts should not be considered legal advice. Qualified professionals should be sought regarding advice and questions specific to your circumstances.
Subscribe to Updates
The 黑料社区Foundation and 黑料社区provide a breadth of information created to strengthen travel plazas鈥� ability to meet the needs of the traveling public in an age of disruption. This includes knowledge filled blog posts, articles and publications. If you would like to receive a digest of blog post and articles directly in your inbox, please provide your name, email and the frequency of the updates you want to receive the email digest.
