| 7/2/2009 |
Biodiesel tax incentive bill headed to governor
Legislation to make the state’s biodiesel tax incentive more effective is now heading to the governor’s desk after passage by the General Assembly.
The legislation, sponsored by Sen. Louis P. DiPalma and Rep. J. Russell Jackson, is aimed at encouraging the production of biodiesel, a cleaner burning, renewable-resource fuel made from vegetable fat.
“We should be encouraging people to use alternative fuels that are renewable, cleaner and less dangerous. But we need to make sure that our incentives are aimed at the fuels that people actually need, and this legislation changes our law so it does that,” said Senator DiPalma, a Democrat who represents District 12 in Middletown, Little Compton, Newport and Tiverton. “This is a practical change that will make the law more effective at encouraging green choices.”
The legislation (2009-S 0525aa, 2009-H 5782A) would make blended biodiesel motor vehicle fuel that is manufactured in Rhode Island eligible for exemption from state fuel taxes, which was just raised to 32 cents 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 cents to $1 per gallon in tax credits.
“This may seem like a small step, but it’ll go a long way toward encouraging people and businesses to choose vehicles that use biodiesel. With the tax credit available to drivers of more types of vehicles, it will be a much more effective incentive,” said Representative Jackson, a Democrat who represents District 73 in Newport and Middletown.
The drawback of the state’s current biodiesel tax exemption being applied strictly to 100-percent pure biodiesel was brought to the attention of legislators 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 Dec. 3, and T.H. Malloy & Sons Inc, in Cumberland, a biodiesel distributor, on Dec. 17.
For more information, contact:
Meredyth R. Waterman, Publicist
State House Room 20
Providence, RI 02903
(401) 222-2457 |
LEGISLATIVE INFO
