Tax Incentive to Bolster Production of Alternative Fuels in Georgia

ealELLENWOOD, Ga., Tuesday, September 26, 2006 - At the site of a future biodiesel production facility, Governor Sonny Perdue today proposed a sales tax exemption for materials and equipment used in the construction of biofuel facilities in Georgia. 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. "My commitment is to provide state leadership for serious,sustained development of alternative fuel sources in Georgia," said Governor Sonny Perdue. "It is vitally important that we decrease our dependence on foreign oil. New alternative fuel production facilities are proving that with leadership and innovation this can be done." BullDog BioDiesel, LLC, produces clean-burning biodiesel from animal fats, cooking waste oil and soybean oil. The company is constructing a 15 million gallon per year biodiesel plant in Ellenwood and will employ approximately 15 people. "Governor Perdue's proposed sales tax exemption is a great example of how this country can drive economic growth and a healthy environment at the same time," said BullDog BioDiesel CEO Jack McWhirter. "It's this type of thinking that made Georgia a clear choice for our first production site." Demand for biofuels is expected to increase due to a combination of factors, including the decision by U.S. refiners to replace MTBE, an oxygenate known to contaminate drinking water, with ethanol and the production and promotion of alternative fuel vehicles by major auto manufacturers such as Ford and General Motors. The biofuel tax incentive will help Georgia to be a leader in attracting companies in the biofuels industry. "I want to make it clear that Georgia is open for business," said Governor Perdue. "We want entrepreneurs who share my vision for Georgia-based alternative fuels."