| Oregon's biomass tax credits |
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| Biomass credit amounts |
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Note: the information on this Web site is for informational purposes only and should not be construed as legal or tax law advice.
Oregon tax credits are available for several types of biomass materials produced or collected in Oregon and converted to biofuels or bioenergy in Oregon. The credits for biomass are
- $.05 per pound for oilseed crops
- $.90 per bushel for grain crops (corn is excluded, and wheat is eligible only after January 1, 2009)
- $.10 per gallon for virgin oil or alcohol delivered for production in Oregon from Oregon-based feedstock
- $.10 per gallon for used cooking oil or waste grease
- $10.00 per wet ton for wastewater biosolids
- $10.00 per green ton for woody biomass collected from nursery, orchard, agricultural, forest, or rangeland property in Oregon, including but not limited to prunings, thinning, plantation rotations, log landing or slash resulting from harvest or forest health stewardship
- $10.00 per green ton for grass, wheat straw, or other vegetative biomass from agricultural crops
- $5.00 per wet ton for yard debris and municipally generated food waste
- $5.00 per wet ton for animal manure and rendering offal
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| Eligibility and recordkeeping |
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To claim the credit, you must produce or collect the biomass in Oregon and deliver the biomass to a bioenergy facility in Oregon for use as an energy fuel.
Any agricultural producer or biomass collector that operates as a trade or business that pays taxes for a business site in Oregon is eligible for the tax credit. An agricultural producer means a person that produces biomass that is used in Oregon as biofuel or to produce biofuel. A biomass collector means a person that collects biomass to be used in Oregon as biofuel or to produce biofuel. The business, its partners or its shareholders may use the credit.
The producer or collector can also be an Oregon non-profit organization, tribe or public entity that transfers the credit to an Oregon business or resident with an Oregon tax liability. The Oregon Department of Revenue has developed a transfer form for producers/collectors to allocate the credit to another party that pays Oregon income tax.
To be eligible for the credit, the biomass producer/collector must transfer ownership or contractual rights of the material to the biofuel or bioenergy producer. You must record and retain documentation to support your biomass tax credit claim for five years following the claim (not collection/production). Eligible biomass must be be produced and collected in Oregon and converted to biofuel or bioenergy in Oregon. A receipt for delivery or sale of the qualifying biomass would document the necessary information if it contained all of the following information.
- The name and address of the producer or collector of the biomass
- Location of production and collection of the biomass (street or road address, or forest unit, and county)
- The type of biomass (grain, seed oil, manure…)
- The amount of biomass in the appropriate quantity (tons, pounds, bushels, gallons…)
- Receiver of the biomass
- Location of the biofuel energy use of the biomass
- A signed declaration that the receiver will put the feedstock to biofuel or energy use in Oregon.
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| How to claim the credit on your Oregon tax return |
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You do not need to apply in advance for the biomass credits. This credit is taken directly against taxes owed when you file your Oregon tax return. You may claim the credit on line 27 (“other credits”) of the Oregon corporate excise tax form. For tax year 2008, the Oregon Department of Revenue has introduced form BPC to assist businesses in calculating the credit.
You may carry forward unused portions of the tax credit and use it against your tax liability for the four following tax years.
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| For more information |
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View the text of House Bill 2210, which created the biomass tax credits.
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