Biodiesel Blend Tax Credit

Licensed biodiesel blenders are eligible for a tax credit for special fuel, including diesel, blended with biodiesel to create a biodiesel blend. The tax credit is granted on a per gallon basis in the amount that the rate for special fuel exceeds the rate for the biodiesel blend. The purpose of the credit is to offset any tax liability resulting from the blending of previously untaxed biodiesel. (Reference South Dakota Statutes 10-47B-121.1)