Tax Incentives & Grants

Federal Biofuel Grant

The USDA provides a grant program that incentivizes fuel retailing stations, bulk and terminal operations, fleets, and home heating oil operations to blend higher blends of ethanol and biodiesel. The grant program supports the funding of the infrastructure for these higher blends.

USDA Higher Blends Infrastructure Incentive Program

Federal Tax Incentives and Registrations

EPA Renewable Fuel Standard

•Renewable Fuel Standard Regulations, Title 40, Part 80, Subpart M

•Central Data Exchange (CDX) Account Registration for Marketers/Blenders

•EPA Renewable Fuel Standard Data

EPA Registration of Fuels and Fuel Additives (for producers and importers)

Producers and importers of renewable fuel, importers of fossil fuels, exporters of renewable fuels and fossil fuels need to register with the EPA under Part 79. Importers and exporters are considered obligated parties and will be required to retire RINs based upon the RVO set by EPA as well as the gallons imported/exported.

•Part 79 – Registration of Fuels and Fuel Additives – Title 40, Part 79

IRS Blender Application Form

If you are considering becoming a blender of renewable fuel, you will need to register under the IRS 637 program (see instructions and form below). Depending upon where you are planning to blend, you may need a 637M or S. This process can take some time, we recommend starting this process as soon as you have identified how you will be blending.

•637 Registration Program Information – Excise Tax Benefit

•637 M Form

Claiming the IRS Blenders Tax Credit

After a blender is registered with the IRS and begins blending biofuels to create a transportation fuel, the blender will need to begin paying quarterly excise taxes (which may have been paid upstream previously). The BTC may be claimed on the 720 or the 8849 form.

•IRS Form 720 – Quarterly Excise Tax Return

•IRS Form 8849

State Incentives

US Department of Energy Alternative Fuels Data Center

Use the Alternative Data Center to look up the incentives that may be available in your location – this may include tax incentives, credits and loan opportunities.

Some states also have a state program that promotes credit generation from renewable fuels that produce lower or no carbon intensity than fossil fuels. These credits can be generated and traded on top of the RINs.

California Air Resources Board Low Carbon Fuel Standard

Oregon Clean Fuels Program