Iowa biofuels bill to include 30-cent-per-gallon biodiesel tax incentive

In Iowa, the new state biofuels bill will include a provision to add tax incentives for biodiesel retail sales. The bill proposes a 3-cents- per-gallon tax credit for B2-B5 biodiesel blends, 7.5 cents per gallon for B5 to B10, 15 cents per gallon for B10 to B20 and 30 cents per gallon for B20 and above blends. Members of the Iowa Soybean Association said that increasing tax incentives for higher biodiesel blends is a top priority for the association in the 2008 legislative session.

Iowa, best known for its ethanol plants, is also the leading biodiesel-producing state, according to a report from BBI on the top biodiesel producing states. The top ten, in terms of actual and planned capacity are:

1. Iowa 351.5 Mgy
2. Texas 265 Mgy
3. Illinois 199 Mgy
4. Alabama 155 Mgy
5. New Jersey 134 Mgy
6. Indiana 130 Mgy
7. Washington 116 Mgy
8. Nevada 109 Mgy
9. Missouri 107 Mgy
10. North Dakota 93 Mgy

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