Biodiesel Suppliers Tax Credit

The Biodiesel Incentive Act, enacted in April 2003, created a tax credit for biodiesel suppliers and a production incentive for qualified biodiesel producers in Arkansas. Biodiesel suppliers are eligible for a 5% tax credit for the cost of facilities and equipment used directly in the wholesale or retail distribution of biodiesel fuels. The credit may be carried forward for a maximum of three years. Suppliers must be certified to qualify for this incentive. The credit may not be claimed for any facility or equipment operating on or before a supplier is certified, or for which a tax credit was previously claimed by a supplier for any other tax year.