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Biodiesel Powered Vehicles: Financial incentives and tax credits (EVs)

Federal Incentives

There are no Federal incentives for individuals using biodiesel. (Though there are incentives for producing and distributing biodiesel.)

Oregon Biofuel Consumer Credit

The good news is that there is an Oregon incentive. Here is the relevant language from the Oregon Department of Revenue.
"If you use B99 or E85 biofuels in your alternative fuel vehicle, you may claim a credit of $0.50 per gallon of biofuel. The maximum credit per year is $200 (400 gallons) per vehicle. To qualify the vehicle must be registered in Oregon and be able to run on B99 or E85 biofuel."

To receive this credit:

1. Keep track of your biodiesel (B99) purchases.

2. Compute your allowable credits and enter the amount as an "Other credit" on your Oregon income tax return. Use numeric code 744 to identify the credits.

3. You must keep records to support your fuel purchases for five years.