B.C. Creates Fuel Tax Exemption for Ethanol, Biodiesel

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VICTORIA, B.C. – The province of B.C. is offering fuel tax exemptions for fleets and individuals that use biodiesel and ethanol-blended fuels.

Beginning July 1 the ethanol and biodiesel portions of fuel will be exempt from the provincial motor fuel tax in an effort to promote the environmentally-friendly fuels. Ethanol is created from organic materials such as corn and grain and biodiesel is made from vegetable oils and animal fats.

The tax exemptions will apply to blends of up to 25 per cent ethanol or 50 per cent biodiesel.

Currently Canadian Biofuels is attempting to localize production of biodiesel in the Lower Mainland of B.C., which would also result in decreased cost for users.

A number of municipalities in the Lower Mainland have completed a pilot project using biodiesel and they say they will continue to use it when the cost becomes more competitive. That decision will likely be reinforced with the province’s announcement.

For more information, visit www.gov.bc.ca/rev

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