Georgia Governor Sonny Perdue this week proposed a sales tax exemption for materials and equipment used in the construction of biofuel facilities in Georgia. According to a press release from the governor’s office, the four percent tax incentive, an annual savings of $2 to 4 million, will be available to facilities producing and processing certain biofuels (ethanol, biodiesel and butanol) derived from Georgia-grown agriculture products and biomass. The governor made the proposal at the site of BullDog BioDiesel LLC, which is converting a former Goodyear tire plant into a 15 million-gallon-per-year biodiesel plant in the metro Atlanta community of Ellenwood. (read more)

Another company that could benefit from the tax incentives is Xethanol which recently purchased a former Pfizer pharmaceutical manufacturing complex to construct a 50 million gallon per year cellulosic ethanol plant in Augusta, Georgia. (see previous post)