Biodiesel Tax Refund

A biodiesel supplier is entitled to a tax refund of $0.50 per gallon of biodiesel fuel used by the supplier to produce a biodiesel blend that contains not more than 2% biodiesel by volume and that is for sale by the supplier or for use by the supplier in a trade or business. In order to qualify for the tax refund, a supplier must meet the following requirements: 1) sign a financial incentive agreement with the Arkansas Department of Economic Development; 2) obtain approval from the Arkansas Alternative Fuels Commission and the Department of Finance and Administration as a biodiesel producer and have the production capacity to produce at least one million gallons of biodiesel in a 12-month period; and 3) certify that it will produce biodiesel fuel that meets the appropriate federal and state standards. This incentive expires June 30, 2007. (Reference Arkansas Code 15-4-2803)