Extension of the Biodiesel Income/Excise Tax Credit

The SkunK can give another reason for the nice run in GERS stock lately. Look at what he just gleamed from the glistening innards of the Emergency Economic Stabilization Act signed into law Friday. The biodiesel tax credit was extended a year. This will provide additional stability and money to the industry. Since GERS creates a feedstock and then the biodiesel - and sells that biodiesel into the market - It should help GERS directly.

The Act also now treats all biodiesel the same - giving some stimulus to the advanced technologies GERS has in development. It also limits the benefits to fuels produced in the good ol'USA. We should be hearing shortly from the more ed-u-cated elites who took the weekend off - on the details of how this will help our biodiesel industry - but remember u heard it here first.


SEC. 202. Credits for biodiesel and renewable diesel.
(a) In general.—Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) are each amended by striking “December 31, 2008” and inserting “December 31, 2009”.
(b) Increase in rate of credit.—
(1) Income tax credit.—Paragraphs (1)(A) and (2)(A) of section 40A(b) are each amended by striking “50 cents” and inserting “$1.00”.
(2) Excise tax credit.—Paragraph (2) of section 6426(c) is amended to read as follows:

“(2) Applicable amount.—For purposes of this subsection, the applicable amount is $1.00.”.


http://domesticfuel.com/2008/09/24/biodiesel-tax-credit-part-of-extension/

Uniform treatment of diesel produced from biomass.
—Paragraph (3) of section 40A(f) is amended—
(1) by striking “diesel fuel” and inserting “liquid fuel”,
(2) by striking “using a thermal depolymerization process”, and
(3) by inserting “, or other equivalent standard approved by the Secretary” after “D396”.


END of "Splash and Dash"

Limitation to biodiesel with connection to the United States.
—No credit shall be determined under this section with respect to any biodiesel which is produced outside the United States for use as a fuel outside the United States. For purposes of this paragraph, the term ‘United States’ includes any possession of the United States.”.

The bill would end the practice of shipping biodiesel through the United States to collect the credit, said a Senate Finance Committee spokeswoman, adding "it will be the end of splash and dash as we know it."

In "splash and dash," tankers loaded with foreign-made biodiesel stop at U.S. ports to pick up enough conventional diesel fuel to qualify for the biodiesel credit before sailing for a final destination.

The addition of 9,000 gallons of conventional diesel would be enough for a 9 million-gallon tanker to collect the credit on its entire cargo, according to one description.

http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE4927AZ20081003?pageNumber=1&virtualBrandChannel=0

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Here is the 400+ page bill in all its detailed glory:
http://thomas.loc.gov/home/gpoxmlc110/h1424_eas.xml#toc-id4B56FDAA8A8E473194A471E49BC90066
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PS - Here is more help for the Ethanol Industry upon which our COES depend. More and more Ethanol Plant revenue additions include both Carbon Dioxide capture and Corn oil Extraction - Here is also direct help for the Carbon Dioxide capture:

SEC. 45Q. Credit for carbon dioxide sequestration.
“(a) General rule.—For purposes of section 38, the carbon dioxide sequestration credit for any taxable year is an amount equal to the sum of—
“(1) $20 per metric ton of qualified carbon dioxide which is—
“(A) captured by the taxpayer at a qualified facility, and
“(B) disposed of by the taxpayer in secure geological storage, and

“(2) $10 per metric ton of qualified carbon dioxide which is—
“(A) captured by the taxpayer at a qualified facility, and
“(B) used by the taxpayer as a tertiary injectant in a qualified enhanced oil or natural gas recovery project.

SkunK