Biofuel Production And Use Tax Credit Worksheet

2012

BIOFUEL PRODUCTION AND USE TAX CREDIT

WORKSHEET INSTRUCTIONS

A taxpayer engaged in the production of certiﬁ ed biofuel in Maine is allowed a credit of $0.05 per gallon against the tax

imposed on income derived during the taxable year from the production of that biofuel. When certiﬁ ed biofuel is blended

with petroleum or other non-biofuels, the credit allowed will be limited to the portion of that blend that constitues biofuel .

The credit allowed, including carryovers, may not reduce the tax liability otherwise due to less than zero. A person entitled

to a credit for any taxable year may carry forward and apply the portion of any unused credit to the tax liability on income

derived from the production of biofuel for any one or more of the next ten taxable years.

The term “biofuel” means any liquid or gaseous product or energy source used as a substitute for liquid or gaseous fuels that

is derived from agricultural crops or residues or from forest products or by-products, as distinct from petroleum or other fossil

carbon sources. Biofuel includes, but is not limited to, ethanol, methanol derived from biomass, levulinic acid, biodiesel,

pyrolysis oils from wood, hydrogen or methane from biomass, or combinations of any of the above that may be used to

propel motor vehicles either alone or in blends with conventional gasoline or diesel fuels or that may be used in place of

petroleum products in whole or in part to ﬁ re heating devices or any stationary power device.

To be eligible for this tax credit, the biofuel must have been produced in tax year 2012, meet state and federal regulatory

requirements, and be certiﬁ ed by the Commissioner of the Department of Environmental Protection (“DEP”). A taxpayer

must apply to DEP for biofuel certiﬁ cation. Details about certiﬁ cation requirements and applications may be obtained from

the Maine Department of Environmental Protection, Bureau of Air Quality, Mobile Sources Section. Contact the Mobile

Sources Section by telephone at (207) 287-2437 or access the Bureau of Air Quality web site at ,

select Programs, and then select Mobile Sources.

The certiﬁ cation of biofuel eligible for the tax credit that is issued by DEP will include the taxpayer’s name, address, tax

identiﬁ cation number (either social security number or employer identiﬁ cation number) and the quantity of eligible biofuel

produced. A copy of the certiﬁ cation must be submitted with an income tax return on which a biofuel production and use

tax credit is claimed.

In the case of pass-through entities (partnerships, LLCs, S corporations, trusts, etc.), the partners, members, shareholders,

beneﬁ ciaries or other owners are allowed a credit in proportion to their respective interest in these entities.

SPECIFIC LINE INSTRUCTIONS

Please enter taxpayer name and employer identiﬁ cation number (“EIN”) or social security number (“SSN”).

Line 1. Multiply the Maine taxable income generated by the sale of certiﬁ ed biofuels by the applicable tax rate. To

calculate the applicable tax rate, divide the gross tax liability (Form 1120ME, Line 6 or Form 1040ME, Line 20) by

the taxable income shown on your return (Form 1120ME, Line 5 or Form 1040ME, Line 19).

Line 2. Multiply the number of gallons of certiﬁ ed biofuel produced (from the certiﬁ cation of biofuel eligible for the tax credit

issued by DEP) by $0.05.

Line 3. Enter any tax credit amount claimed but unused from the past ten years.

Line 4. The credit available is the amount calculated for this year plus carryforward amounts.

Line 5. Enter the credit amount being used this tax year. The amount used is limited to the tax liability generated by the

production of certiﬁ ed biofuel.

Rev. 11/12

Biofuel Production And Use Tax Credit Worksheet - 2012 Page 2