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8/11/05-Gov. Brad Henry has signed a bill into law that provides credit against the tax imposed for any biodiesel facility that produces at a rate of 25 percent of its “originally-designed capacity.” A 20-cent-per-gallon tax credit would be given for every gallon of biodiesel produced.
The new law, previously HB1398, requires a company to build and begin operating a biodiesel plant before it would be granted the tax credit. In addition, facilities must specialize in producing biodiesel derived from organic materials, including animal fats and grain components.
Covey said in a written statement a total cap of $125 million will be available to finance the tax credits, which will be available for five years beginning Dec. 31, 2007.
Biodiesel is an alternative fuel made from agricultural products such as canola or animal fat. It can be used alone or blended with petroleum-based diesel and used in diesel engines.
The new law, previously HB1398, requires a company to build and begin operating a biodiesel plant before it would be granted the tax credit. In addition, facilities must specialize in producing biodiesel derived from organic materials, including animal fats and grain components.
Covey said in a written statement a total cap of $125 million will be available to finance the tax credits, which will be available for five years beginning Dec. 31, 2007.
Biodiesel is an alternative fuel made from agricultural products such as canola or animal fat. It can be used alone or blended with petroleum-based diesel and used in diesel engines.