biodiesel tax credit

[sgcsalsero]

With diesel at 3.50 per gal., has anyone looked into using (or used) the IRS tax credit for biodiesel for their business?? http://www.irs.gov/pub/irs-pdf/f8864.pdf

To state the obvious, people go out of their way for .20 cents off a gallon (hey I just did it yesterday for 13 gal.), seems upwards of a $1 per gal. from the IRS makes it compelling.

 

[backpack09]

Good Luck with that.

Massachusetts is trying to find a way of taxing home brew biodiesel makers so they can "maintain the roadways"

 

[sgcsalsero]

. . I'd like to see how they're going to enforce that, are they going to train the utility or postal guys to covertly look for them

 

[backpack09]

Easily I would think... Your truck is not supposed to smell like fried fish when you are driving, then a simple dye test they do on OTR haulers would be enough to fine you.

 

[pcampbell]

LEGAL Biodiesel smells like french fries as does "illegal". I don't know that they could discern the difference between the two on the road ...

 

[backpack09]

legal vs illegal biodiesel?

Do you mean gas pump (taxed) vs homebrew (not taxed)?

I assume that the same dye that is used in #2 to make diesel is added to taxed biodiesel.

I was unaware of the similar smells... Up here in taxachusetts Biodiesel is rarely available at a pump, hell real diesel is barely available.

 

[sgcsalsero]

One other thought is that home brews could be mixed with real stuff to mask it . . .

 

[pcampbell]

They do not dye taxed pump diesel, they dye offroad diesel. This is how they get truckers. If you have dyed diesel it's illegal.

And so I guess what I'm saying is if they don't dye ASTM certified station pumped and taxed biodiesel how they would be able to tell the difference between that and homebrewed biodiesel.

I don't know about Whitman but when we were thinking about moving to Hampshire county there were plenty of biodiesel stations. In NJ we have 1, it's in the ghetto and it's 45 minutes away.

 

[sgcsalsero]

In NJ we have 1, it's in the ghetto and it's 45 minutes away.

Yeah, but you probably have 6 guys hanging around (in addition to the state mandated attendant) willing to pump your fuel for a $2 tip . . .

 

[Harley]

Somewhat on the same topic (tax credits). If you use propane in your business (i.e. forklifts - I don't believe it relates to heating, but I only skimmed recent code change) you would be able to get a $0.50/gallon tax credit for the # of gallons used. The only issue is to register first, as an alternative fuel user, and keep records of the gallons used (which are pretty easy to do).