Gov. Heineman Signs Bill Creating Credits for
Investment in Biodiesel Production
(Lincoln, NE) Gov. Dave Heineman signed legislation creating a tax credit for individuals investing in the development of a biodiesel production facility in Nebraska. LB 343 was introduced to help encourage greater investment in biodiesel production.
“There is tremendous potential for Nebraska to expand our presence in the renewable fuels sector by becoming a leading producer of biodiesel,” Gov. Heineman said. “This bill will encourage greater diversity in renewable fuels by providing opportunities for Nebraskans to invest in the development of a biodiesel facility.”
Investments made in locally-owned facilities producing B100 biodiesel will be eligible for a tax credit of up to 30 percent. The bill was introduced by Sen. Chris Langemeier of Schuyler.
Sen. Langemeier said, “With the signing of LB 343, coupled with the vast resources available in Nebraska, we will be positioned to become the nation’s leader for biodiesel production.”
Last year, Nebraska was the nation’s fifth largest producer of soybeans at more than 250 million bushels. Currently, only one plant is in operation with two additional facilities under construction.
The Nebraska Energy Office estimates that biodiesel production will increase from 400,000 gallons in 2006, to 60 million gallons by the end of 2008 as these plants become fully operational, with additional room for growth as communities consider opportunities to invest in renewable fuel projects.