HOUSE DOCKET, NO. 3502        FILED ON: 1/14/2009

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2770

The Commonwealth of Massachusetts

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In the Year Two Thousand Nine

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An Act establishing a biofuel tax credit..

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

 AN ACT ESTABLISHING A BIOFUEL TAX CREDIT.

    Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1.  Section 1 of Chapter 64A of the General Laws is hereby amended by inserting after subsection l, the following subsections:

(m) “renewable motor fuel” shall mean a combustible liquid derived from grain starch, oilseed, animal fat, or other biomass; or produced from a biogas source, including any nonfossilized decaying organic matter which is commonly and commercially used as a fuel in internal combustion engines. 

(n) “biofuel” shall mean any blend of fuel which is at least 20% renewable motor fuel by volume. 

SECTION 2.  Chapter 63 of the General Laws is hereby amended by inserting after section 38T the following section:-

SECTION 38U.  Notwithstanding any general or special law rule or regulation to the contrary, for taxable years 2006, 2007, 2008, 2009 and 2010, there shall be deducted from the adjusted gross income in determining taxable income up to $500 for an individual and up to $1,000 for a business for the cost of renewable motor fuel or biofuel (as defined in Section 1m of Chapter 64A). 

(a) The deductions may be used only for the cost of renewable motor fuel or biofuel purchased in the Commonwealth of Massachusetts during that taxable year.

(b) The commissioner of revenue shall promulgate rules and regulations necessary to implement this section.  The department shall file a copy of any rules and regulations with the clerk of the Senate and of the House of Representatives and with the Joint Committee on Revenue.