Biodiesel production, distribution, and use, as with many emerging alternative energies, has been aided in large part by recent government incentives making biodiesel fuel production and distribution more attractive. These tax incentives put money back in the pockets of biodiesel producers who, presumably, pass the benefits on to you, the consumer, with lower biodiesel prices.

Not just any biodiesel is eligible for tax incentives. The definition of biodiesel fuel, as it’s used for tax purposes, is ‘monoalkyl esters of long chain fatty acids’. Biodiesel production companies seeking any of these credits must ensure that they are making biodiesel fuel that meets the Environmental Protection Agency (EPA) requirements for registration of fuels and fuel additives as described in the Clean Air Act, as well as requirements put forth by the American Society of Testing and Materials.

All companies, whether a biodiesel production company or not, that are selling or using biodiesel may qualify for the Biodiesel and Ethanol (VEETC) Tax Credit, on their income taxes. There are two such types of credit.

the Straight Biodiesel Credit (considered a ‘general business credit’ by the IRS) – the biodiesel in question must not have been mixed with any petroleum-based diesel fuel, and the company itself must be the biodiesel production company making it;

the Biodiesel Mixture Credit – the biodiesel in question must contain only biodiesel fuel and petroleum-based diesel, with absolutely no kerosene added, and the company itself must be the biodiesel production company making it.

Additionally, for either tax credit on biodiesel cost, one of the following criteria must also be met;

othe biodiesel production company actually uses the biodiesel itself as a fuel;

othe biodiesel production company sells the biodiesel retail which is then used in the fuel tank of the buyer.

The tax credits on Straight Biodiesel are equal to $1 per gallon of agri-biodiesel and $0.50 per gallon of waste grease biodiesel. The tax credits on Biodiesel Mixtures are $0.01 (a penny) per percentage point of agri-biodiesel and $0.005 (half-a-cent) per percentage point of waste grease biodiesel.

That is, unless the amount of credit approved to taxpaying biodiesel companies applying for the credit in a given year exceeds the annual cap of $1.5 million, in which case the Department of Revenue will prorate credits to biodiesel production companies accordingly.

These tax credits, however, are currently temporary, and set to expire in 2008 – an added incentive to get started now on that biodiesel production company of your own that you’ve been dreaming about. There’s literally no time to waste.

Another Federal Tax Credit, the Small Agri-Biodiesel Producer Credit (Section 1345: Energy Policy Act of 2005), grants $0.10 per gallon on up to 15 million gallons to small agri-biodiesel production facilities producing less than 60 million gallons per year.

Incidentally, there are local and state tax credits all over the country available on biodiesel cost and costs on other alternative fuels. Visit: www.eere.energy.gov/afdc/laws/incen_laws.html to find out what your locality offers.

According to recent U.S. Department of Agriculture (USDA) study, demand for biodiesel production is set to increase by at least 124 million gallons per year, however fears about the rapidly rising prices of crude oil suggest that facilities might be making biodiesel fuel in even larger amounts and at an even faster rate.

By: Mike Cubert -

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Biodisel is clean, renewable, cheap and popular. The best part is that it’s very easy to make it at home. Visit our biodiesel making section for how to information.

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With gas prices getting more expensive, greenhouse gasses on the rise, you should start looking at alternatives. Biodiesel has been getting a lot of publicity but is it the answer? Can you use it? If so how?

Biodiesel Fuel

If you have an interest in being environmentally friendly, then no doubt you’re aware of the damage fossil fuels are doing to our environment. Not only that, but at some point they will run out. Add in the recent jump in gas prices, and it’s hardly surprising that more people are talking about making their own biodiesel fuel. Although it sounds like a great idea, you need to consider a few points before going ahead and making your own biodiesel fuel.

What Is Biodiesel?

To start with, let’s take a look at what biodiesel fuel actually is. At its most simple, biodiesel fuel is made from either vegetable oil, animal fat, or mixture of the two. It’s a clean burning fuel that is made from renewable resources hence the name biodiesel.

Generally, biodiesel fuel is made from straight vegetable oil, sometimes referred to as SVO. So if you want to make your own biodiesel fuel, you’ll need to have an adequate supply of the basic ingredients. Unfortunately, most households don’t produce enough waste animal fat or vegetable fat to come anywhere close to making enough biodiesel fuel to keep the family car running.

Using Recycled oil

This has led to a whole new industry, with the basic aim of sourcing much larger quantities of raw product. They get together with restaurants, bakeries, and any other business that uses a deep fryer, so that they can collect the used oil for recycling. The oils are then blended and used as the basis for biodiesel fuel. The processes are the same as you’d use to make biodiesel fuel at home, but by having access to a much larger supply of raw products, these companies can produce biodiesel in quantities that are more viable.

Can I make it at Home?

One thing to remember is that it’s not quite this simple! Used vegetable oil needs to be mixed and stored, which can be quite a problem if you have large amounts of it. You also need to dewater, filter and deacidify the waste oil before it can be used for making biodiesel. This makes the production of biodiesel fuel at home a lot more complicated.

Click Here To Learn How To Make Your Own Biodiesel At Home!

Click Here To Learn How To Make Your Own Biodiesel At Home!

Having said that, it’s certainly still quite possible to make biodiesel fuel at home, simply by buying straight vegetable oil, rather than using waste products. Even though it will cost you a lot more, when you compare it to the cost of buying the necessary amount of gas to run your car for a year, you can still save an enormous amount – somewhere around 75 percent. Even better, you’re saving the environment too.

Can I mix it with Petroleum?

The short answer is yes! It can be blended with petroleum in any percentages and used as fuel. There is a fuel called B20 which is 20 percent biodiesel that has shown significant environmental benefits. It can be used in an existing diesel engine with either little or no modifications. The only thing to be aware of is that biodiesel acts as a solvent and can remove old deposits on on your fuel tank walls and your fuel lines. This may lead to a clogging of your filters so care should be taken. But hey – then you have a clean system!!

So if you’re interested in saving money and helping out the environment, look at the option of making biodiesel fuel at home. It takes a little bit of effort, but the rewards are definitely worthwhile.

Steve Dolan is an environmentalist concerned about global warming and non-renewable resources. Biodiesel may form part of the answer. Find out more by clicking BioDiesel and Alternative Fuels

By Steve Dolan Published: 2/15/2007 Biodiesel Advantages Here are a few advantages to using biodiesel (as opposed to petroleum diesel):. Produces significantly less air pollution than diesel fuel – none of that black soot coming out of your exhaust; Runs in existing, unmodified diesel engines …   The Pros And Cons Of Biodiesel Fuel Overall, these are the advantages and disadvantages that are associated with biodiesel fuel. In the event that you are interested in learning more about biodiesel fuel, there is a ton of information online that you are able to use as …   What are the advantages/disadvantages of using biodiesel fuel What are the advantages and disadvantages of using biodiesel fuel compared to using diesel/gasoline.

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