Bio-Diesel Supplemental Tax Form

Effective August 23, 2006 Maine has a (lower) differential tax on bio-diesel fuel sold in Maine. The tax rate on regular diesel is 27.9 cents per gallon, and the tax rate on bio-diesel is 20 cents per gallon. Bio-diesel is defined as diesel fuel with at least two percent biological content. The tax reduction is provided at the time of purchase.

Given that regular diesel and bio-diesel are interchangeable fuels, there is no way to make a bio-diesel differential compatible with the IFTA tax reporting process. Therefore, Maine will continue to give on the IFTA tax return the full diesel tax credit of 27.9 center per gallon on all diesel-type fuel including bio-diesel. When a licensee purchases
bio-diesel in Maine and uses it out-of-state, the licensee effectively receives a tax credit on taxes they did not pay. Accordingly, IFTA licensees purchasing more bio-diesel in Maine than they could have used in Maine must file a quarterly supplemental tax return, and pay any additional tax that is owed on travel outside Maine.

Bio-Diesel Supplemental Tax Form with formulas (.xls)

Bio-Diesel Supplemental Tax Form without formulas (.xls)

Bio-Diesel Supplemental Tax Form (.pdf)