Biodiesel Tax Exemption

Biodiesel is exempt from the $0.34 per gallon state motor fuel tax. Biodiesel may be blended with other fuel for use in motor vehicles, but only the biodiesel portion of the blended fuel is exempt. Biodiesel is defined as fuel that is derived from vegetable oils or animal fats and conforms to ASTM Standard D6751 specifications for use in diesel engines and results in employment at a manufacturing facility for biodiesel fuel. Biodiesel must be produced at a manufacturing facility in Rhode Island.

(Reference Rhode Island General Laws 31-36-1(6))