CHAPTER 698

H.P. 1089 - L.D. 1492

An Act To Promote the Production and Use of Fuels

Derived from Agricultural and Forest Products

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 36 MRSA §5219-X is enacted to read:

§5219-X.__Biofuel production and use

1.__Definition.__As used in this section, unless the context otherwise indicates, the term "biofuel" means any liquid or gaseous product or energy source used to propel motor vehicles or otherwise substitute for liquid or gaseous fuels that is derived from agricultural crops or residues or from forest products or byproducts, as distinct from petroleum or other fossil carbon sources.__"Biofuel" includes, but is not limited to, ethanol, methanol derived from biomass, levulinic acid, biodiesel, pyrolysis oils from wood, hydrogen or methane from biomass, or combinations of any of the above that may be used to propel motor vehicles either alone or in blends with conventional gasoline or diesel fuels or that may be used in place of petroleum products in whole or in part to fire heating devices or any stationary power device.

2.__Credit allowed.__A taxpayer engaged in the production of biofuels in the State who has received certification under subsection 4 is allowed a credit against the tax imposed by this Part on income derived during the taxable year from the production of biofuel in the amount of 5__per gallon of liquid biofuel or gaseous biofuel with a BTU equivalent to that of one