The list below contains summaries of all North Carolina incentives and laws related to Biodiesel.
The Clean Fuel Advanced Technology (CFAT) project focuses on reducing transportation related emissions in North Carolina's non-attainment and maintenance counties for National Ambient Air Quality Standards. Projects that are adjacent to areas may also be eligible if emissions will be reduced in the eligible counties. The project is funded by the North Carolina Department of Transportation, State Energy Office, and the Division of Air Quality, and covers three broad areas: education and outreach; project funding; and recognition of exemplary activities. Although funding is not currently available, future financial support may be available for AFVs, fueling infrastructure, idle reduction technologies, heavy-duty HEVs, heavy-duty buses, and diesel retrofits.
Point of Contact
Anne Tazewell
Alternative Fuels Program Manager
North Carolina Solar Center, North Carolina State University
Phone: (919) 513-7831
Fax: (919) 515-6159
cleantransportation@ncsu.edu
The North Carolina Green Business Fund was established to provide grants to private businesses with fewer than 100 employees, nonprofit organizations, local governments, and state agencies to encourage the expansion of small and medium sized businesses to help grow a green economy. One of the fund's priority areas is the development of the biofuels industry in the state. The North Carolina Department of Commerce may make grants available to maximize development, production, distribution, retail infrastructure, and consumer purchase of biofuels. Reference North Carolina General Statutes 143B-437.4)
A tax credit is available for the processing of biodiesel, ethanol, or ethanol/gasoline blends consisting of at least 70% ethanol. The credit is equal to 25% of the cost of constructing and equipping the facility and a facility must be placed in service before January 1, 2011. The credit must be taken in seven equal annual installments beginning with the taxable year in which the facility is placed in service. In lieu of this credit, a taxpayer that constructs and places into service three or more commercial facilities for processing renewable fuel in North Carolina and invests at least $400 million in total in the facilities is allowed a credit equal to 35% of the cost to the taxpayer of constructing and equipping the facilities. To claim the credit, the taxpayer must obtain a written determination from the Secretary of Commerce that the taxpayer is expected to invest at least $400 million in three or more facilities within a five-year period. (Reference North Carolina General Statutes 105-129.15 and 105-129.16D)
Taxpayers who construct, purchase, or lease renewable energy property, are eligible for a tax credit equal to 35% of the cost of the property. Renewable energy property includes equipment that uses renewable biomass resources to produce ethanol, methanol, biodiesel, or methane produced via anaerobic biogas, utilizing agricultural and animal waste or garbage; and related devices for converting, conditioning, and storing the liquid fuels and gas produced with the biomass equipment. The credit must be taken in five equal installments beginning with the taxable year in which the property is placed in service. There is a maximum funding amount of $2.5 million per installation which applies to renewable energy property placed in service for any purpose other than residential. Property must be placed in service before January 1, 2011. (Reference North Carolina General Statutes 105-129.15 and 105-129.16A)
A tax credit is available for qualified fueling facilities that dispense biodiesel, ethanol, or ethanol/gasoline blends consisting of at least 70% ethanol. The credit is equal to 15% of the cost of construction and installation of the dispensing facility, including pumps, storage tanks, and related equipment, that is directly and exclusively used for dispensing or storing the fuel. The credit must be taken in three equal annual installments beginning with the taxable year in which the facility is placed into service. Facilities must be placed in service before January 1, 2011. (Reference North Carolina General Statutes 105-129.16D)
Grants from the North Carolina Department of Environment and Natural Resources Division of Air Quality are available for the incremental cost of purchasing original equipment manufacturer alternative fuel vehicles, vehicle conversions, implementing idle reduction programs, and constructing or installing public alternative fueling facilities. More than $500,000 in funding is available.
Point of Contact
Anne Galamb
Environmental Specialist
North Carolina Department of Environment and Natural Resources
Phone: (919) 715-6296
Fax: (919) 715-1812
anne.galamb@ncmail.net
http://www.ncair.org/
The North Carolina State Energy Office administers an energy credit banking program, which enables the state to generate funds from the sale of Energy Policy Act of 1992 (EPAct) credits. The monies generated by the sale of EPAct credits are deposited into the Alternative Fuel Revolving Fund (Fund), which enables state agencies to offset the incremental costs of purchasing alternative fuel, developing fueling infrastructure, and purchasing AFVs. Funds are distributed to state departments, institutions, and agencies in proportion to the number of EPAct credits generated by each. For the purposes of this program, the definition of alternative fuel includes 100% biodiesel (B100), biodiesel blends of at least 20% (B20), ethanol/gasoline blends consisting of at least 85% ethanol (E85), compressed natural gas, propane, and electricity, and includes hybrid electric vehicles. The Fund also covers additional projects approved by the Energy Policy Council. (Reference Senate Bill 457, 2009, and North Carolina General Statutes 143-58.4, 143-58.5, 143-341(8)i, and 136-28.13)
Every new motor vehicle purchased by the State of North Carolina that is designed to operate on diesel fuel must be covered by a manufacturer's warranty that allows the use of B20 fuel in the vehicle. This requirement does not apply if the Department of Administration determines that the intended use of the vehicle requires a type of vehicle for which a manufacturer's warranty allowing the use of B20 is not available. (Reference House Bill 1079, 2009, and North Carolina General Statutes 20-351.11, 136-28.15, and 143-341(8)(i))
Every school bus that is capable of operating on diesel fuel must be capable of operating on diesel fuel with a minimum content of 20% biodiesel (B20). Furthermore, at least 2% of the total volume of fuel purchased annually by local school districts statewide, for use in diesel school buses, must be a minimum of B20 to the extent that biodiesel blends are available and compatible with the technology of the vehicles and the equipment used. (Reference North Carolina General Statutes 115C-240(c) and 115C-249(a))
At least 75% of new or replacement light-duty cars and trucks (with a Gross Vehicle Weight Rating of 8,500 pounds or less) purchased by the State of North Carolina must be AFVs or low-emission vehicles. (Reference North Carolina General Statutes 143-215.107C)
The retail sale, use, storage or consumption of alternative fuels is exempt from the state retail sales and use tax. (Reference North Carolina General Statutes 105-164.13)
Biodiesel that is produced by an individual for use in that individual's private passenger vehicle is exempt from the state motor fuel excise tax. (Reference North Carolina General Statutes 105-449.88)
A bond filed with the North Carolina Secretary of Revenue is not required for fuel blenders or suppliers of ethanol or biodiesel when the expected motor fuel tax liability is less than $2,000. (Reference North Carolina General Statutes 105-449.72(a))