A fuel supplier (wholesaler) licensed under North Dakota law that blends biodiesel fuel in North Dakota is entitled to an income tax credit equal to five cents for each gallon blended during the taxable year.
Qualifications
The biodiesel or green diesel fuel must have at least a 5% blend (“B5”). “Biodiesel” means fuel meeting the specifications adopted by the American Society for Testing and Materials. “Green Diesel” means a fuel produced from non-fossil renewable resources, including agricultural or silvicultural plants, animal fats, residue, and waste generated from the production, processing, and marketing of agricultural products, silvicultural products, and other renewable resources, which meets applicable American society for testing and materials specifications. The credit for blending biodiesel may only be earned on the initial blending of B100. Subsequent blending of gallons other than B100 does not earn a credit. Property Tax Clearance Record form required.
Credit Amounts
The first taxable year in which the credit may be claimed is the taxable year in which the facility begins producing or blending biodiesel or green diesel fuel. Eligible costs incurred before the taxable year in which production or blending begins are considered in calculating the credit. The credit may not exceed the corporation’s tax liability in any year, but any unused portion of a taxable year’s credit may be carried forward for up to five taxable years. The maximum cumulative credit allowed to a taxpayer for all taxable years is limited to $250,000.
Application Process
Not Applicable.
How to Claim
If you're filing as a/an: | Claim the credit on: |
| Individual or Sole Proprietor | Schedule ND-1TC, Tax Credits |
| C Corporation | Form 40, Corporation Income Tax Return Schedule TC |
| S Corporation | Form 60, S Corporation Income Tax Return Schedule K |
| Partnership | Form 58, Partnership Income Tax Return Schedule K |
| Fiduciary | Form 38, Fiduciary Income Tax Return Schedule 38-TC |