Biodiesel Tax Credit

Corporations in North Dakota are allowed an income tax credit equal to 10% per year for five years of the direct costs incurred after December 31, 2002, to establish, adapt, or retrofit a facility to produce or blend at least 2% biodiesel fuel. The credit is first allowed in the year the facility begins producing or blending biodiesel fuel. An unused credit may be carried forward five taxable years. A corporation is limited to a cumulative credit of $250,000 for all taxable years.

N.D.C.C. § 57-38-30.6

For tax years beginning after December 31, 2004, a licensed fuel supplier who blends at least 5% biodiesel fuel is allowed an income tax credit of five cents per gallon of blended fuel. An unused credit may be carried forward five taxable years.

For tax years beginning after December 31, 2004, a seller of biodiesel fuel having at least a 2% blend is allowed an income tax credit equal to 10% per year for five years of the seller’s direct costs incurred to adapt or add equipment to their facility to enable them to sell the biodiesel blend. The credit is first allowed in the year the facility begins selling the biodiesel fuel. An unused credit may be carried forward five taxable years. A seller is allowed no more than $50,000 of credits for all years.

N.C.C.C. 57-38-01.22 and 57-38-01.23