S.D. Tax Break Would Be Provided For Biodiesel

from the Press and Dakotan (Yankton)

PIERRE (AP) -- It may be a few years before biodiesel production in South Dakota reaches the point that would trigger a tax break at the pump for motorists.

That's what legislators were told Friday during review of a bill to reduce the state motor fuel tax on biodiesel.

Biodiesel is a blend of soybean oil and diesel fuel.

SB148 would cut the 22-cent tax on diesel fuel to 20 cents if it contains at least a 5 percent blend of plant oil.

The bill cleared the House State Affairs Committee 11-0, sending it to the House floor. The tax break would not start until biodiesel production capacity in the state reaches 20 million gallons a year.