New Tax Credit for Oregon BioDiesel Users - 50 cents a gallon!

Spokane Walt

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Well,

If you use B99 in Oregon, it looks like you will be able to get 50 cents a gallon back on your State Income taxes (up to $200 per year)

B20 for home heating oil gets 5 cents a gallon up to $200

This was first reported back in March when it passed the House (HB 2210)

http://www.greencarcongress.com/2007/03/oregon_house_pa.html


Today, it passed the senate:

http://www.greencarcongress.com/2007/06/oregon-legislat.html#more


Since the governor recommended the bill, I would see no reason why it won't get signed into law.

The purpose of the Bill is many fold, with lots of incentives to produce feed stock in state, and they also specify at what production levels there will be mandatory blends in all diesel in the state... Triggers for B2 and B5.

How long until B5 is common in almost every diesel pump? In Oregon I'd doubt it will be long. Then places with dedicated Biodiesel pumps will be B99 or at least B20...


Walt
 
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gottdi

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If you use B99 in Oregon, it looks like you will be able to get 50 cents a gallon back on your State Income taxes (up to $200 per year)

B20 for home heating oil gets 5 cents a gallon up to $200
What good is that when you get back all your money anyway. It will only help a few and at a max of $200 claim it's just hot air. Remember it's only removing a max of $200 taxable income. So what is that if you had to be taxed for $200. In reality its just chicken scratch if you do get to deduct any to keep your taxable income down.

I know some is better than none.
 

b4black

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Spokane Walt said:
B20 for home heating oil gets 5 cents a gallon up to $200
Is this wise?

If biodiesel cleans up crud in a car's fuel system, what will happens when it gets into a heating oil tank? Those things usually have years and years worth of crap on the bottom. Nobody cleans those things.

Most poeple let their left-over heating sit all summer long. The B20 won't last as long as diesel.

If the seals in car degrade over time with B100, then what about the seals in a furnace? Are they OK with B20? What about the copper lines?
 

osesu96

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gottdi said:
What good is that when you get back all your money anyway.
So are you suggesting that because a few folks (minority) can't benefit that the rest of us (majority) shouldn't get a little back? If so, that is short-sighted thinking IMO.

It will only help a few and at a max of $200 claim it's just hot air. Remember it's only removing a max of $200 taxable income. So what is that if you had to be taxed for $200. In reality its just chicken scratch if you do get to deduct any to keep your taxable income down.

I know some is better than none.
Depends, generally a "credit" is a direct reduction of tax owed whereas a "deduction" is a reduction in taxable income. If this is truly a credit then I would suspect it would wipe out any tax due up to the 200.00 limit. Any tax due over 200.00 would still need to be paid.

IMO, anything the gov't can do to help promote biofuels should be encouraged even if it doesn't personally help you. Sure is better than giving the Saudis a tax break, right? :rolleyes:
 

Savantster

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From the "bye bye 1st gen" thread, this won't matter.. since it seems some auto manufacturers are moving to engines that won't run on bio-diesel and will require dino-diesel or GTL synth oils..

and yes, typically a "credit" is cash off your "tax bill" as opposed to a deduction that may or may not drop you in to another bracket. If you get enough "credits", you can dump all your debt for the year.. so credits are a LOT more valuable than deductions.
 

whitedog

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Necroposting here...

Savanster said:
From the "bye bye 1st gen" thread, this won't matter.. since it seems some auto manufacturers are moving to engines that won't run on bio-diesel and will require dino-diesel or GTL synth oils..
I'm not sure about this. let me quote from the bill:

"Other renewable diesel" Means a diesel fuel substitute, produce from nonfossil renewable resources, that has an established ASTM standar, is approved by the United States Environmental Protection Agency, (Those bastards) meets specifications of the National Conference on Weights and Measures, and complies with standards promulgated under ORS 646.957.

(Bold is just my opinon)

So, does GTL synth fuels fall in this category? I dunno.

My first look at this bill, I didn't put it together about only B99 being allowed a tax credit. That certainly takes the joy out of it for people whose diesel engines are not designed to be run on B99 and have a warranty stipulation of B5 or less. I guess it's only for the hard-core bio users.

Or the people that buy B99 then splash mix the rest of the tank with D2 to get the B5 ratio.
 

Chasee

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Savantster said:
From the "bye bye 1st gen" thread, this won't matter.. since it seems some auto manufacturers are moving to engines that won't run on bio-diesel and will require dino-diesel or GTL synth oils..
I wouldn't be too sure. As much as "some" automakers want to do away with 1st gen, if the market demands otherwise, they will capitulate.

Another thing to consider: you don't have to necessarily design an engine to run on BTL/GTL, that's the point. Those fuels are the holy grail in that they can be made from biomass and do not require any engine modifications at all.

So all that means is the automakers need to invest a tiny bit more time/money into engineering around the basic 1st gen issues, then everyone is happy. Burn 1st gen B100 until your local Mobil station has BTL, then burn that. Let's all be honest, the 1st gen "issues" are almost insignificant. So much so that the marketplace is easily accepting B20+ and we're not hearing about mass failures. Can't take much for Bosch and gang to deal with.

But when you see automakers investing in BTL/GTL companies, now you start to see what they are up to. 1st gen is very decentralized. Joe chicken farmer can build a refinery. 2nd gen means centralisation and control all over again. Vested interest much more so than "concern for fuel quality" is what's driving them. If it weren't, like I said above, there'd be no reason not to design for 1st gen for the time being.

Think I'm ranting here? Well why then does my 2005 PD have 76K+ miles on WVO, not even ASTM biodiesel, and its still running perfectly? If it blew up tomorrow, you still would know that the car was already designed such that it could go 76K on random crappy WVO. How much R&D would it take to make it able to go 500K on ASTM B100? Heck, how much R&D would it take to make it able to go 500K on random crappy WVO?
 
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