Ohio gives biofuel retailers a tax credit
Posted By RichC on July 15, 2007
There is positive news for advocates for Ohio biofuels; fuel retailers who sell E85 Ethanol and B20 Biodiesel will receive a 15 cents per gallon tax credit in 2008 and 13 cents in 2009. The credits go to the retailer of the biofuel. I’ll include a press release from the Ohio Soybean Growers Association signed by Governor Strickland in early this month. Thanks to David Brannon who posted it to our local CinciTDI website.
Governor Strickland Signs Budget with 4.5 Million Dollars for Alternative Fuel Programs
Columbus, OH– Governor Ted Strickland signed the biennium state budget on Saturday,with 4.5 milliondollars allotted to alternative fuel programs that will work to increase availability of soy biodiesel and E85 across the state. The Ohio Soybean Association (OSA) and the Ohio Corn Growers Association (OCGA), in cooperation with the Ohio Farm Bureau, have been working together to promote these programs, which resulted in the most attention biofuels have ever received in the state budget.
“The increased presence biofuels received in the state budget is a sure sign that alternative energy sources are a high priority for our state government, and it is exciting to know that soy biodiesel and E85 are leading the way,†said Mark Watkins, OSA president and Hardin County soybean farmer. “OSA’s work in solidifying these programs in the budget is just one example of the important role OSA plays in the legislative arena and how the organization is working on behalf of Ohio’s soybean industry.â€
Included in the budget for the first time ever is a program that will allow fuel retailers who sell E85 Ethanol (85 percent ethanol and 15 percent gasoline) or B20 soy biodiesel (20 percent soy biodiesel and 80 percent petroleum diesel) to take advantage of a tax credit of 15 cents per gallon in 2008 and 13 cents per gallon in 2009. These credits will be paid directly to the retailer.
A second program different from the tax credit will allow retailers who do not sell E85 or B20, but wish to start, obtain infrastructure grants to assist in the installation of the necessary equipment, such as pumps and tanks. Blenders that want to begin processing E85 or B20 will be able to take advantage of these grants to help with their specific infrastructure needs as well. The Alternative Fuels Infrastructure Grant Program was established in House Bill 245.
Also included in the budget is a grant program designed specifically for soy biodiesel and its use in school buses. School districts that choose to use soy biodiesel in their buses can receive grants that will offset the incremental cost of the fuel. Currently, one of the major reasons that more school districts are not using soy biodiesel in buses is because, on average, it costs more than petroleum diesel. This grant program will give school districts a chance to use a fuel that is better for the environment and the health of students without additional cost.
All of the grant programs will be administered by the Ohio Department of Development. Details regarding grant application and requirements are forthcoming.
The Ohio Soybean Association is governed by a 24-member volunteer farmer board dedicated to education and promotion, as well as to uniting producer interest through support of legislative activities beneficial to the Ohio soybean industry.
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