Virginia lawmakers endorse tax credit incentive program for biodiesel fuels Winning support from the agribusiness and environmental communities, Del. Christopher K. Peace's (R-Mechanicsville) tax credit program will provide incentives to produce renewable fuels beginning July 1, 2008. House Bill 139 passed the Virginia General Assembly’s Senate Finance committee unanimously this week and is scheduled to pass the full Senate within days.
Farm Bureau, Agribusiness Council, Virginia Conservation Network and the Virginia League of Conservation Voters joined in unique support of Chief patron Peace. This new incentive will provide greater opportunity for those who seek to produce biodiesel up to two million gallons of fuel per year. This bill allocates an amount of $0.01 to each gallon produced as an incentive for both corporate and private companies to produce more biodiesel and environmentally friendly fuels. This bill creates a $5,000 cap on the credit and the credit applies to both corporate and private producers.
"With renewable fuels we are making our way towards a secure supply which frees us from further dependence on foreign sources of energy. Reducing greenhouse gases and economic development in our rural areas makes biofuel a win-win. Bio-diesel is a cleaner burning replacement fuel made from natural, renewable sources," Peace said.
Andrew Smith, Senior Assistant Director of Governmental Relations for the Virginia Farm Bureau stated, "Delegate Peace should be commended for working to bring the interested parties together to develop an incentive to help in increasing biodiesel production, by helping small producers. We need to develop our renewable energy sources in a way that isn't just the mega facility route, but those that are smaller community based. The increased use of these types of fuels not only reduce our addiction to foreign energy sources, but help generate new markets for our domestically grown crops here in Virginia. "