The biodiesel tax incentive, under the rcently passed allows companies to blend biodiesel with petroleum diesel with a $1 refundable tax credit for each gallon of biodiesel blended in the US.
Taking a cue from the passage of the bill bio-diesel developer Blue Sun has annouced a fresh round of investments that are derived from the credits earned in 2012.
The investments will help the advancement of the next generation of biofuel technologies.
Commenting on the developments Blue Sun CEO Leigh Freeman said that the company will use the incentives to fully commercialize its emerging technologies.
Several other bio-diesel producers in the US have welcomed the government’s move and expect it to augur well for the industry.
Canada-based Biox CEO Kevin Norton noted that the incentive’s retroactive reinstatement and extension provides higher certainty for producers, refiners and importers.
"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.
