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  #1  
Old 02-24-2006, 12:09 PM
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how to claim BioDiesel or WVO tax credit???

i was told that i could get a tax credit for making my own biodiesel or WVO. i did some searching and have found some sites.

http://www.greencarcongress.com/2004/10/biodiesel_tax_c.html

i am not sure if i can claim the credit if i made my own WVO. anyone have any better knowledge in this area?

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Old 02-24-2006, 12:25 PM
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I would be REAL careful in how you address WVO iun your taxes. Since you are not paying any kind of road tax with that option, you would probably be under scrutiny, and may have some sort of fine (depending what state you are in, I'm sure). I believe because of road taxes, using WVO (free) is actually illegal.
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Old 02-24-2006, 01:00 PM
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Quote:
Originally Posted by MattBelliveau
I would be REAL careful in how you address WVO iun your taxes. Since you are not paying any kind of road tax with that option, you would probably be under scrutiny, and may have some sort of fine (depending what state you are in, I'm sure). I believe because of road taxes, using WVO (free) is actually illegal.
Exactly.

Now there was something I heard of a while back in Illinois about getting a deduction for modifying your vehicle to burn alternative fuels, but I always was afraid of that due to the road tax issue. I figured they just wanted your name to put on a list somewhere for later reference.

When you are running WVO or your own biodiesel, you are committing tax evasion (at least at the federal level, if not at the state level). I haven't heard this issue discussed a lot recently, but several years ago most states didn't really care much because it was such a rare thing. As it gains popularity, though, I wouldn't be surprised to hear more stories of people getting in trouble for it. That's why I prefer to stay under the radar.
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Old 02-24-2006, 01:02 PM
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so really this is only for suppliers that manufacture massive amounts of biodiesel from pure or waste oils.

bummer, glad i asked first though.
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  #5  
Old 02-24-2006, 01:26 PM
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But homebrew biodiesel is exempt from road taxes and federal taxes because its considered a "fuel additive". So your not committing a tax evasion. As for running straight wvo that i dont know, maybe you are commiting a tax evasion running wvo i guess.
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  #6  
Old 02-24-2006, 02:27 PM
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There is a Tax topic w/link in the DIY/FAQ's
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Old 02-24-2006, 02:37 PM
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Talk to a CPA and maybe a lawyer that works with tax codes.

When it comes to legal and tax matters don't diy, it could cost you if you screw up.
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Old 02-24-2006, 07:48 PM
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Quote:
Originally Posted by greasybenz
But homebrew biodiesel is exempt from road taxes and federal taxes because its considered a "fuel additive". So your not committing a tax evasion. As for running straight wvo that i dont know, maybe you are commiting a tax evasion running wvo i guess.
But, biodiesel is not an additive when you are running B100. I thought there were ways to pay road taxes on the fuel that you make and use.
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  #9  
Old 02-25-2006, 01:30 AM
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WVO is not at this time considered a fuel, so it is by law a fuel additive. To be listed as a fuel it needs to be tested and scrutinized to meet a set of standards. This is a very expensive process not likely to be funded by the average joe. Until WVO is listed as a fuel its a grey area of the law, no tax break that I've heard, no law against it.

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