Biodiesel Fuel Production Income/Franchise Tax Credit

The biodiesel fuel production credit may be claimed by persons engaged in the business of producing biodiesel fuel in Wisconsin. The credit is available for taxable years beginning after December 31, 2011, and before January 1, 2015.

To qualify for the credit, the business must produce at least 2,500,000 gallons of biodiesel fuel in Wisconsin in the taxable year. The credit is equal to the number of gallons of biodiesel fuel produced in Wisconsin in the taxable year multiplied by 10 cents. The maximum amount of credit that a claimant may claim in a taxable year is $1,000,000.

"Biodiesel fuel" means a fuel that is comprised of monoalkyl esters of long chain fatty acids derived from vegetable oils or animal fats. The fuel must (1) be registered as a biodiesel fuel by the manufacturer under 40 CFR Part 79, (2) be pure biodiesel fuel, is identified as such with the alphanumeric B100, and does not contain any petroleum product, any additive, or other foreign material, and (3) meet all of the applicable requirements of the American Society for Testing and Materials.

The biodiesel fuel production credit is nonrefundable. Any unused credit may be carried forward and offset against tax for up to 15 years.

Partnerships, LLCs treated as partnerships, and tax-option (S) corporations cannot claim the credit; instead the credit flows through to the partners, members, or shareholders based on their ownership interests.

May 7, 2012