Biodiesel Gets Tax Break in N.D.; Debate Continues in Minnesota

May 9, 2001 10:19 AM, EDT

Although lawmakers stopped short of mandating the sale of biodiesel in North Dakota, they recently enacted tax breaks intended to make biodiesel more attractive to buyers. In Minnesota, meanwhile, the alternative fuel made from vegetable oils, such as soybean oil, or animal fats continues to be something of a political football.

North Dakota legislators knocked 0.1% from the 2% sales tax for owners of over-the-road vehicles as well as farm and construction machinery that buy fuel blended with 2% biodiesel.

The lawmakers also cut a penny and half from the 21-cent-per-gallon fuel tax if the fuel purchased is 2% biodiesel. Gov. John Hoeven signed the tax cuts into law.

For the full story, see the May 7 print edition of Transport Topics. Subscribe today.