Wisconsin Biodiesel Fuel Production Credit

For taxable years beginning after December 31, 2011, and before January 1, 2015, a biodiesel fuel production credit can be claimed by persons engaged in the business of producing biodiesel fuel in Wisconsin. To qualify for the credit, the business must produce at least 2.5 million gallons of biodiesel fuel in Wisconsin in the taxable year. The credit is equal to the number of gallons of biodiesel fuel produced in Wisconsin in the taxable year multiplied by 10¢, with a maximum credit of $1 million per claimant allowable in a taxable year. “Biodiesel fuel” means a fuel that is comprised of monoalkyl esters of long chain fatty acids derived from vegetable oils or animal fats. The fuel must: (1) be registered as a biodiesel fuel by the manufacturer under 40 CFR Part 79; (2) be pure biodiesel fuel, be identified as such with the alphanumeric B100, and not contain any petroleum product, additive, or other foreign material; and (3) meet all of the applicable American Society for Testing and Materials (ASTM) requirements. Though the biodiesel fuel production credit is nonrefundable, any unused credit can be carried forward and offset against tax for up to 15 years. The credit cannot be claimed by partnerships, LLCs treated as partnerships, and tax-option (S) corporations, but the credit flows through to the partners, members, or shareholders based on their ownership interests.