Crap happens, and in states like Oregon and New Mexico, some taxpayers may even benefit from it.
Last fall, Oregon enacted the Bovine Manure Tax Credit, which offers bovine manure producers and collectors a tax credit for each wet ton of manure collected to be used as a biofuel or to produce a biofuel. In recent weeks, the state enacted a new set of temporary rules for administering the credit beginning on or after Jan. 1, 2018. The new rules include definitions, eligibility requirements, application information, and fees.
Applicants eligible for the credit include bovine manure producers or collectors subject to Oregon’s personal income tax; corporations that collect bovine manure in Oregon that is used in-state as biofuel or to produce biofuel and that are subject to Oregon’s corporation excise tax or corporation income tax; and tax exempt organizations that collect bovine manure in Oregon used in-state as biofuel or to produce biofuel.
According to Or. Admin. R. 603-020-0016, applicants must submit their application, along with an application fee of $100 plus 3.8 percent of the total credit amount, within 60 days of the end of the tax quarter for which the manure is produced or collected. In addition to the information requested on the form, the applicant must also provide information about the amount of wet ton manure claimed in the application.
New Mexico has a similar credit, the Agricultural Biomass Tax Credit, which provides taxpayers a credit for each wet ton of manure from a commercial dairy or feedlot operation that is transported from the dairy or feedlot to a facility that uses agricultural biomass to generate electricity or fuel. New Mexico’s credit is available for any taxpayer who owns a dairy or feedlot.
Oregon and New Mexico aren’t the only states providing credits when animals go number two. Nevada’s Recycling Property Tax Abatement is available for businesses that use recycled material, which includes agricultural waste such as manure, as its primary fuel for the generation of electricity. In Arizona, the Renewable Energy Production Credit grants a credit to owners of qualified energy generators that use a wind or biomass derived qualified energy resource, including manure, based on the amount of energy produced.
Even though it may seem dirty, it appears as though manure is making a name for itself when it comes to clean energy credits.
Continue the discussion on Bloomberg Tax's State Tax Group on LinkedIn: Does your state provide animal waste-related credits?
Get a free trial to Bloomberg Tax: State, a comprehensive research service that provides deep analysis and time-saving practice tools to help practitioners make well-informed decisions.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)