| 4/6/2009 |
DiPalma bill to revise biodiesel tax exemption scheduled for Finance Committee hearing
STATE HOUSE, Providence – Legislation sponsored by Sen. Louis P. DiPalma (D – Dist. 12, Little Compton, Middletown, Newport, Tiverton) to change the state’s tax incentive for the sale of biodiesel fuel so that it is more effective at encouraging the production of biodiesel is scheduled for a hearing before the Senate Finance Committee tomorrow at 3 p.m. in Room 211.
The legislation, (2009-S0525), would make blended biodiesel motor vehicle fuel that is manufactured in Rhode Island eligible for exemption from state fuel taxes, currently $.30 per gallon. Currently, the law is interpreted in such a way that only fuel that is 100 percent biodiesel qualifies for the state exemption. However, a great deal of the current technology requires blended biodiesel, or biodiesel mixed with regular diesel, and a range of federal incentives allow for blending of biodiesel. Depending on a variety of factors, federal tax credits can range from $.50 to $1.00 per gallon in tax credits.
The drawback of the state’s biodiesel tax exemption being applied strictly to 100 percent pure biodiesel was brought to the attention of members of the Senate during a series of small business tours around the state. The tours included stops at Newport Biodiesel, in Newport, a manufacturer of biodiesel fuel, on December 3, and T.H. Malloy & Sons Inc, in Cumberland, a biodiesel distributor, on December 17.
The bill is co-sponsored by President of the Senate M. Teresa Paiva Weed (D – Dist. 13, Newport, Jamestown), Senate Majority Leader Daniel P. Connors (D – Dist. 19, Cumberland, Lincoln) and Senate Minority Leader Dennis L. Algiere (R – Dist. 38, Charlestown, Westerly).
For more information, contact:
Greg Pare, Press Secretary for the Senate
State House Room 314
Providence, RI 02903
(401) 276-5558 |
LEGISLATIVE INFO
