Biomass Producer or Collector Tax Credit

May 22, 2021


The Oregon Department of Energy (ODOE) has issued final rules regarding an increase in the application fee for this tax credit. The new fee is $100 plus 3.8 percent of the tax credit amount (previously $100 plus 2.5 percent of the tax credit).

 The Oregon Department of Energy provides a tax credit for agricultural producers or collectors of biomass.  The credit can be used for eligible biomass used to produce biofuel; biomass used in facilities such as those producing electricity from anaerobic digestion, pellets, or torrefaction also qualifies.  Biomass used as biofuel or used to produce biofuel - in a solid, liquid or gaseous state - qualifies for this tax credit.  The production or collection of biomass must take place in Oregon and must also be used in Oregon.  Certain types of biomass are ineligible for this credit, including biomass to be used for firewood or charcoal, construction and demolition debris, urban wood waste, yard debris, residual wood waste generated at a mill (such as sawdust or bark), algae, and material from pre-construction or construction activities and golf courses. The tax credit rates are multiplied by the amount of biomass produced or collected and vary by biomass type, as follows:

  • Oil seed crops: $0.05/pound
  • Grain crops: $0.90/bushel
  • Virgin oil or alcohol: $0.10/gallon
  • Used cooking oil or waste grease: $0.10/gallon
  • Wastewater biosolids: $10/wet ton
  • Woody biomass: $10/dry ton
  • Vegetative biomass from agricultural crops: $10/dry ton
  • Animal manure or rendering offal: $5/wet ton

The credit can be transferred to another taxpayer, though the minimum discount value for the transfer of the credit is 90% of the value of the tax credit.  This tax credit is available for tax years beginning prior to January 1, 2018.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Oregon
Incentive Type: Corporate Tax Credit
Web Site:
Administrator: Oregon Department of Energy
Start Date:
Eligible Renewable/Other Technologies:
  • Biomass
  • Anaerobic Digestion
Incentive Amount: Varies by biomass type, see below for more detail


Name: OAR 330-170-0010 to 330-170-0070
Effective Date: 1/1/2014
Expiration Date: 1/1/2018
Name: ORS § 469B.403 et seq.
Date Enacted: 2007, subsequently amended
Name: ORS 315.141
Date Enacted: 07/03/2007
Effective Date: 01/01/2007


Name: Matt Krumenauer
Organization: Oregon Department of Energy
Address: 625 Marion Street, N.E.
Salem OR 97301-3737
Phone: (503) 383-8694

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.