Senate Passes Tax Exemption Bill for Biofuel Producers and Industry

In an effort to bring attention to the importance of biofuels in Oklahoma and to place increased emphasis on the production of oil seed crops, the State Senate passed House Bill 1916 Tuesday. The principal Senate author, Senator Ron Justice explained the legislation would allow for a tax exemption on the production of biofuels.

“By running this bill, it helps put emphasis on the Ag producers in the fact that when they produce these products and use the oil or the biofuels and then blend those into the other products, it gives a tax exemption on the amount of fuel that is blended in, not on the total amount but on the percentage that’s actually blended in,” said Justice, R-Chickasha.

Justice further noted that the House author Phil Richardson, R-Minco, and he thought this legislation would provide not only a tax exemption for producers, but would offer opportunities for increased research, increased job opportunities, and more crops for producers to grow.

“The reality is that this legislation is far more reaching than just the tax exemption itself. It adds to our overall Ag economy in the State of Oklahoma. That’s why I think it has some great potential,” said Justice. “Honestly, right at this point there isn’t a lot of this production, but if you look around at the interest across the nation and look at Oklahoma and the opportunities we have here I think it’s something we need to be out front on and to really be involved in.”

The measure was amended to add the emphasis on industry. Justice said he was happy to support the amendment saying that it made the legislation stronger, because it now not only includes the agricultural producers, but would provide opportunities for those industries that utilize such agricultural products.