Companies that blend biodiesel with petroleum diesel are now eligible for a $1 refundable tax credit for each gallon of biodiesel blended.
Bio-diesel producer Blue Sun, prompted by the passage of the bill, has announced a fresh round of investments into the company that will be derived from the credits earned in 2012.
Investments are expected to accelerate the development of next generation bio-fuel technologies by the company.
Commenting on the developments Blue Sun CEO Leigh Freeman remarked that the incentives will help the company to fully commercialize its emerging technologies.
Other bio-diesel producers such as Canada-based Biox have welcomed the government’s move.
Biox CEO Kevin Norton noted, "The passage of this legislation is significant to BIOX as the retroactive clause allows us to recognize approximately Cdn$7 million in contingent revenue on product sold during calendar 2012, which will strengthen our earnings and cash position as part of the fiscal Q2 2013 reporting period," Norton said.
