Bill > HB4721

This bill creates tax credits to incentivize the sale and production of biodiesel in Michigan from 2025 to 2030. Retail dealers can claim tax credits ranging from $0.02 to $0.07 per gallon of biodiesel blend sold, depending on the percentage of biodiesel in the blend (from 6% to over 20%). Biodiesel producers in the state can also claim a $0.02 per gallon credit for biodiesel produced, with an annual aggregate credit cap of $2 million. For retail dealers, there is a separate annual aggregate credit cap of $16 million, which will be prorated if the total credits claimed exceed this amount. If a taxpayer's credits exceed their tax liability, the excess will be refunded. The bill defines key terms like "biodiesel" (a diesel fuel substitute made from animal or vegetable fats) and "biodiesel blend" (a mixture of biodiesel and petroleum-based diesel fuel). This legislation aims to promote the use of alternative, potentially more environmentally friendly fuel sources by providing financial incentives to retailers and producers of biodiesel.

Transportation and Infrastructure

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4721