Bill H.3205

HOUSE DOCKET, NO. 2462 FILED ON: 1/20/2011

HOUSE . . . . . . . . . . . . . . . No. 3205

The Commonwealth of Massachusetts

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PRESENTED BY:

Bradley H. Jones, Jr.

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act relative to a biofuel production tax credit.

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PETITION OF:

Name:	District/Address:	Date Added:
Bradley H. Jones, Jr.	20th Middlesex	1/20/2011
Donald F. Humason, Jr.	4th Hampden	1/27/2011
F. Jay Barrows	1st Bristol	2/2/2011
George T. Ross	2nd Bristol	2/3/2011
Donald H. Wong	9th Essex	2/3/2011
Sheila C. Harrington	1st Middlesex	2/4/2011
Matthew A. Beaton	11th Worcester	2/4/2011
Kimberly N. Ferguson	1st Worcester	2/4/2011
Paul K. Frost	7th Worcester	2/4/2011
Bruce E. Tarr		2/4/2011
George N. Peterson, Jr.	9th Worcester	2/4/2011
Bradford Hill	4th Essex	2/4/2011
Elizabeth A. Poirier	14th Bristol	1/21/2011
Viriato Manuel deMacedo	1st Plymouth	2/3/2011

HOUSE DOCKET, NO. 2462 FILED ON: 1/20/2011

HOUSE . . . . . . . . . . . . . . . No. 3205

By Mr. Jones of North Reading, a petition (accompanied by bill, House, No. 3205) of Bradley H. Jones, Jr., and others relative to the granting of tax credits for certain persons engaged in the production of cellulosic biofuels in the Commonwealth. Revenue.

[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 2785 OF 2009-2010.]

The Commonwealth of Massachusetts

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In the Year Two Thousand Eleven

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An Act relative to a biofuel production 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. Chapter 63 of the General Laws, as most recently amended by section 129 of chapter 240 of the Acts of 2010, is hereby further amended by adding the following new section:-

Section 38CC. (a) A taxpayer engaged in the production of eligible cellulosic biofuels in the commonwealth, as defined in section 1 of chapter 64A, shall be allowed a credit against the taxes imposed by this chapter on income derived during the taxable year from the production of eligible cellulosic biofuel for increases in annual production during the first 3 years of production. For the purposes of this section, the production year is the period from July 1 of the current year to June 30 of the succeeding year.

(b) Except as provided in subsection (c), the credit allowed on each gallon of increased cellulosic biofuel production that replaces the use of petroleum or liquid fuels derived from other fossil carbon sources over the previous year, in accordance with paragraph (a), is 10 cents a gallon for each gallon of increased production. In blends with petroleum or other non-cellulosic biofuels, the credit is allowed only on the portion of that blend that the cellulosic biofuel constitutes.

(1) the first year's total production;

(2) the production in the second year that exceeds production in the first year; and

(3) the production in the third year that exceeds production in the second year.

(d) The tax credit shall be taken against taxes imposed under this chapter and shall not be refundable. Any amount of tax credit that exceeds the tax due for a taxable year may be carried forward by the taxpayer to any of the 5 subsequent taxable years.

(e) Cellulosic biofuels for which the credit is allowed must meet state and federal regulatory requirements applicable to the nature and intended use of the fuel produced, and shall be classified as “eligible cellulosic biofuels” in accordance with the provisions of section 1A of chapter 64A.

(f) The commissioner, in consultation with the secretary, shall promulgate regulations necessary for the administration of this subsection.