Tax time relief: biofuel tax credits
With
tax day just past, it’s good to know the IRS still hearts
biofuels. There are plenty of tax credits for those involved in the biofuel way of life. Everyone from individuals
or businesses purchasing cars, to small agri-business biofuel producers (those who make less than 15-million gallons of
biodiesel or 60-million gallons of ethanol) can benefit from these tax credits. Consumers can still get $250-$3,400 for buying or leasing new hybrid, fuel cell, alternative-fuel or “lean-burn” diesel vehicles. The credit depends on the fuel economy and weight of the vehicle. This credit will likely be phased out as manufacturers sell more of these vehicles. People or businesses buying more than one qualifying car, however, get the credit for each vehicle.
Individual tates can also have their own tax credits. Indiana, for example, offers fuel blenders who use Indiana-grown biodiesel fuel can up to $3 million in tax credits.
A great rundown of state-based alternative fuel laws – things like tax credits and idling laws – can be found at the Energy Efficiency and Renewable Energy section of the Department of Energy’s website. There you can find out all the quirky and valuable laws that encourage people to use altfuel vehicles. Some cities in California, for example, offer free parking to people who own or lease alternative fuel vehicles. It looks like most of the entries haven’t been updated since 2005. Here’s hoping they get revamped soon.
[Sources: Indianasoybeans, Energy.gov, Internal Revenue Service, Department of Energy]
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