Oilseed, Biodiesel and Ethanol Subsidies & Renewable Energy Mandates: US Federal & Selected State Initiatives

Abstract

This study describes the major incentives and policies implemented by the federal government, the state of Montana and other selected state governments with respect to ethanol and biodiesel production and consumption. The federal incentives discussed include the Volumetric Ethanol Excise Tax Credit, Biodiesel Blenders Tax Credit, Small Producer Tax Credit, Renewable Fuels Standard, Alternative Fuel Infrastructure Tax Credit, and the Clean Fuels Program. Some of these programs encourage the production of biodiesel or ethanol through tax credits or direct payments. Others encourage the consumption of biofuels by offering credits or direct payments for investments in infrastructure that allow biofuels to be utilized.