Organic High Yield LLC

US Government Biofuels Tax Incentives

Biodiesel and Ethanol (VEETC) Tax Credit 

·        $.51/gallon of Ethanol

·        $1.00/gallon of Virgin Oil Feedstock Biodiesel

·        $.50/gallon of Waste Vegetable Oil Biodiesel

Small Agro-Biodiesel Producer Credit

·        $.10/Gallon for Biodiesel Producers up to 15mmg/yr

Section 1345 of the Energy Policy Act of 2005 allows a tax credit of $.10 per gallon to small agro-biodiesel producers for up to 15 million gallons. To be eligible, a producer must make less than 60 million gallons of biodiesel per year.

Energy Policy Act

·        Mandates 30% reduction in US dependence on foreign oil by 2010

State and Alternative Fuel Provider Rule

·        75% of new light-duty vehicles acquired by state fleets must be alternative fuel vehicles (AFVs); 90% of light-duty vehicles acquired by alternative fuel providers must be AFVs.

Alternative Fuel Infrastructure Tax Credit

·        Tax credit equal to 30% of the of cost alternative refueling property, up to $30,000 for business property. Buyers of residential refueling equipment can receive a tax credit for $1,000.

Requirements for Regulated Federal Fleets

·        75% of new light-duty vehicles acquired by federal fleets must be AFVs.

Alternative Motor Vehicle Credit

·        50% of the incremental cost of the vehicle, plus an additional 30% of the incremental cost for vehicles with near-zero emissions for vehicles <14,001 lb GVWR