Biofuels Tax Exemption

Source: JOIN IEA/IRENA Policy and Measures Database
Last updated: 14 March 2013

The 2001 financial Law established tax incentives for biofuel production, which were approved for biodiesel by the European Commission in 2002. For a three-year period from 2001 to June 2004, a specific annual quota of biodiesel was granted a 100% exemption from excise tax (EUR 403.21 per 1000L). From 2005 onwards, biodiesel benefits from a tax relief of 80%, meaning biodiesel is taxed 20% of the EUR 423 per cubic meter normal consumption tax. The decree implementing the Directive 2009/28/EC (DLgs. 28/2011) foresees a new scheme for subsidies to electricity, aiming to promote a more sustainable use of solid biomasses and biogas. In particular, the decree foresees that new incentives will have to consider traceability and origin of biomass and biogas, and will consider the need to give priority to thermal use of wood biomass and to biogas conversion into biomethan. Moreover, incentives will promote: 1. the efficient use of waste and by-products, efficient use of biogas from zootechnical wastes and from agricultural, forestry and livestock farming by -products, efficient use of products by dedicated non-food crops; 2. the construction and operation of plant fuelled by biomass and biogas from their own agricultural activity carried out by farmers. The verification of compliance with the sustainability criteria for biofuels and bioliquids of art. 18 Directive 2009/28/EC implemeted by Decree 28/2009 has been transposed by means of Legislative Decree 55 of 2011 which also implements Directive 30/2009/EC. The Decree 55/2011 establishes that economical operator have to comply with a National System of sustainability certification.

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