The House Finance Committee voted 12-1 Thursday morning to pass the Biogas System Components Sales and Use Tax Exemption bill by Reps. Dave Young, D-Greeley, and Tim Dore, R-Elizabeth.
The bill incentivizes the production of biogas, which is a process of creating natural gas from manure and other agricultural waste.
The bill exempts materials used in the production of biogas from state sales and use taxes. Local governments will be able to decide if those materials are also exempt from local sales and use taxes as well.
“This bill will help rural biogas producers by giving them a tax break and encourage more investment into this developing technology,” Young said in a news release. “It’s a common-sense bill and I am happy it continues to receive widespread support.”
The passing of the bill may benefit Weld County projects such as the Heartland Biogas Project scheduled to begin later this year.
The House Appropriations Committee will now hear the bill.