Note 3 - Reinstatement of the Biodiesel Blenders' Tax Credit and Small Agri-biodiesel Producer Tax Credit

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Other Income and Other Expense Disclosure [Text Block]

3 ) Reinstatement of the biodiesel blenders' tax credit and small agri-biodiesel producer tax credit

The BTC provides a

one

dollar per gallon tax credit to the blender of biomass-based diesel with at least

0.1%

petroleum-based diesel fuel.  When the tax credit is enacted and in effect, the Company is the blender of record and recognizes the credit as a reduction to cost of goods sold.

The Bipartisan Budget Act of

2018

was passed by Congress and signed into law on

February 9, 2018,

retroactively reinstating the BTC for

2017.

  As this act was passed into law in

2018,

the Company recognized the

2017

impact within the Company’s

2018

financial statements, which resulted in a gross profit of

$28,865.

The Further Consolidated Appropriations Act of

2020

was passed by Congress and signed into law on

December 20, 2019,

retroactively reinstating the BTC for

2018

and

2019

and extending it through

December 31, 2022. 

As this act was passed into law in

2019,

the Company recognized its impact in

2019

for both periods within the Company’s

2019

financial results. The Company recorded a gross profit from the BTC of

$57,872,

that was comprised of

$26,571

and

$31,301

for 

2019

and

2018,

respectively.

As part of each law from which the BTC mentioned above was reinstated, small agri-biodiesel producers with production capacity

not

in excess of

60

million gallons were eligible for an additional tax credit of

$0.10

per gallon on the

first

15

million gallons of agri-biodiesel sold (the “Small Agri-biodiesel Producer Tax Credit”). The Company was eligible for this credit and recognized

$

1,500

for

2019,

2018

and

2017

in the same accounting period as the benefit from the BTC as described above.