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Biodiesel Tax Credits

 
 
  • Congress approves biofuels tax credits for 2013

2013 is a landmark year in the petroleum industry as it marks the 100th year of tax payer subsidies to petroleum. Today, Iowa can take pride in its leadership in biofuels, and now that Congress has extended the biodiesel tax credit for another year, the biodiesel industry can be expected to grow even more than it did in 2012. The state ranks second in having the highest number of installed wind-energy generators and is recognized as receiving over 20% of its electricity from wind generation.

Many of the tax credits expired that provided relief to tax payers and ethanol producers in 2012, but a bill passed by Congress January 1, 2013 will will extend those tax credits. This also extends to wind energy producers as well. The bill extends to the end of the year a production tax credit for wind energy on any facility under construction before the end of 2013.

The Iowa Renewable Fuels Association (IRFA) says Iowa set a record this last year with the production of 184 million gallons of biodiesel, which increased from 169 million gallons in 2011.

IRFA Executive Director Monte Shaw says the tax credit extension is “good news for Iowa jobs, the environment and energy security.”

This new tax credit will fuel competition in the marketplace, which gives off positive implications to the general public. Increased competition essentially puts a downward pressure on prices that save consumers money.

The bill also included a tax break for cellulosic ethanol production. In Iowa there are only a few cellulosic ethanol plants, but the tax credit is likely to change this. The bill extends the tax credit for two years, which means owners of wind facilities must start construction by December 31, 2013 in order to qualify, although they don’t have to be fully operating by that date.

 

1 Comments

  1. USEI says:

    [...] THE U.S. GOVERNMENT SUBSIDY The U.S. Government subsidy creates an assurance of profitability to companies like U.S. Energy Initiatives. The subsidy provides a $1.00 per gallon subsidy for every gallon produced by the firm. For example: if we produce 1 million gallons of fuel we get back $1 million dollars from the government as an incentive to produce green energy. See: http://www.usenergyinit.com/biodiesel-tax-credits/ [...]

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USEI ANNOUNCES A 20% STOCK DIVIDEND FOR SHAREHOLDERS OF RECORD ON THE RECORD DATE

SANTA CLARITA, CALIFORNIA December 8, 2014 (PRNewswire) - US ENERGY INITIATIVES CORPORATION, INC. (OTC Pink: USEI) is pleased to announce today that the Directors...