Wednesday, January 05, 2005

IRS Publishes Tax Guidence on New Biodiesel Incentives

The Internal Revenue Service has issued an important guidance document on the new 2005 tax incentives for biodiesel.

The guidance document provides details on the transition between the pre-2005 reduce-rate excise tax provisions and the new production tax credit for biodiesel producers, which became effective January 1, 2005. It also has details on mandatory registration requirements for biodiesel producers, as well as the method for submitting claims for producer tax credits (including examples of production certificates, which are required for those seeking to claim production tax credits).

The notice will be the subject of a proposed rule making later in 2005, and the IRS is seeking comments on the guidance offered in this document.

A must read for those involved in the biodiesel production industry.

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