Saw an article in the Rapid City Journal that the governor of South Dakota has signed abill allowing for tax breaks on plants that expand thier facility to make biodiesel. May not be a huge change but every little bit helps. Living in Minnesota the last few years I got to kinda see the progress they made and was pleased. My uncle in Minnesota who farms soybeans bought some shares in one of the plants there and worked to get his equipment running on biodiesel has had very good results. I would really like to see more of this.
Rapid City Journal Article
Tax breaks approved for biodiesel
PIERRE (AP) — Gov. Mike Rounds said Thursday that he signed a bill giving tax breaks to soybean plants that expand to produce biodiesel fuel.
Existing law provides refunds on construction taxes that are paid when new agricultural processing plants are built, but expanded plants do not qualify.
The new law, which will be enacted July 1, will extend full refunds of the 2 percent contractor's excise tax and 4 percent state sales tax on soybean plants that are enlarged to also produce biodiesel fuel.
The tax breaks are allowed on plants that cost at least $4.5 million.
Tom Kersting, commercial manager for South Dakota Soybean Processors, said Thursday that the Volga plant may be expanded to produce biodiesel. Studies have not yet determined the size of the potential project, he said.
Kersting said financing is being sought and that success in raising the necessary money will determine if the project is built.
The new tax breaks will not be the deciding factor, he said.
"It's a small percentage of the overall project cost, but it will help," Kersting said.
The Volga plant converts 28 million bushels of soybeans each year into soybean oil and meal.
Linear Mode
