Massachusetts > State Incentives
Cellulosic Biofuel Tax Exemption
For taxable years beginning January 1, 2009, and ending December 31, 2017, fuel consisting of cellulosic biofuel or a blend of gasoline and cellulosic biofuel is eligible for an exemption of the $0.21 per gallon fuel tax, in proportion to the percentage of the fuel content consisting of cellulosic biofuel. For these purposes, eligible cellulosic biofuel includes fuel derived from cellulose, hemicellulose, or lignin derived from renewable biomass that yields at least a 60% reduction in lifecycle greenhouse gas (GHG) emissions relative to the average lifecycle GHG emissions for petroleum-based fuel sold in 2005. (Reference Massachusetts General Laws Chapter 64A, Section 1 and 1A and Massachusetts Department of Revenue TIR 09-4)