Provides a tax credit for farmers who use qualified biodiesel fuel for the sole operation of their farm equipment

Title of bill

An act to amend the tax law, in relation to providing a tax credit to farmers who purchase biodiesel fuel for the operation of their farm equipment

Purpose or general idea of bill

To create incentives for farmers to use homegrown biodiesel for operation of their farm equipment rather than petro-gas.

Summary of specific provisions

Section 1 and 2: Establishes a tax credit of $0.01 per percent of biodiesel per gallon, not to exceed twenty cents per gallon purchased by a taxpayer that is principally engaged in farming.

(b) - Defines Biodiesel and Qualified Biodiesel

(c) - Establishes the application of the credit.

Section 3: is the Effective Date

Justification

Studies have shown that diesel fumes contain particulate matter which can trigger asthma attacks and other respiratory ailments in children and that levels of diesel fumes are up to four times greater inside a bus than ambient levels. Diesel exhaust is classified as a probable human carcinogen by many government authorities including the state attorney general. In addition, dark particles from diesel fuel have been found embedded in glacial ice contributing to rapid melting of polar ice. By giving incentives to farmers to use biodiesel it encourages responsible farming and allows farmers an economic incentive to use such products.

Prior legislative history

06/01/07 Referred to Ways and Means 01/09/08 Referred to Ways and Means 06/19/08 Held for Consideration in Ways and Means 05/06/10 Referred to investigations and Government Operations S2989C/A7132C of 2011-12; Amend and Recommit to Finance S1082A/A54A of 2013-14; Print number 1082a

Fiscal implications

Loss of sales tax revenue.

Effective date

This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2016.