Tax Credits and Loans for Using/Making Biodiesel

Tax Credit Information

Forms 637, 720 and 8864 are forms that all Biodiesel producers will need to complete. Form 637 is the Registration Application. Form 720 is the Quarterly Federal Excise Tax Return to which entities use to report and pay federal excise tax. Form 8864 (shown below) is the Biodiesel Fuels Credit. It allows you to take a tax credit of $1.00 per gallon of either straight agri-biodiesel or in a Biodiesel blend. This Form and others (Form 637 and 720, both of which are necessary to produce Biodiesel) are available by going to the Forms and Publications page of the IRS website located here.

Loan Information

Here's an excerpt from the United States Department of Agriculture (USDA) in regards to loans:

"Section 9006 established the Renewable Energy Systems and Energy Efficiency Improvements Program; authorizing USDA loans, loan guarantees, and grants to farmers, ranchers, and rural small businesses to purchase renewable energy systems and to make energy-efficient improvements. Congress provided $23 million to fund the program in each of FY 2003, 2004, 2005, and 2006. " more infoo