OTHER RESOURCES
Steve Shaffer, Director
1220 N Street
Sacramento, CA 95814
ph: (916) 657-4956
fax: (916) 657-5017
QUICK LINKS
About the Rice Straw Tax Credit Program (RSTC)
The California Department of Food and Agriculture administers the Rice Straw Tax Credit Program established by SB 38 (Lockyer, Ch 954, 1996). The program was created to encourage the development of off-field uses of rice straw as alternatives to field burning or in-field disposal.
Eligible purchases of rice straw can be made through 2007. The program is in effect until December 1, 2008. The aggregate amount of the tax credits granted to all taxpayers cannot exceed $400,000 per calendar year. Certificates are issued on a "first come, first serve" basis to reflect the chronological order that "valid" requests for credits are received by the Department. The allowed credit is against the "net tax" in an amount equal to fifteen dollars per each ton of rice straw.
If the credit exceeds the net tax in the tax year, the excess may be carried over into succeeding years for the next 10 taxable years, or until the credit has been exhausted, whichever comes first. The rice straw credit benefits end-users of rice straw involved in biomass energy, alternative construction materials or pulp production, erosion prevention; animal feed or bedding, compost production, or uses other than open field burning.
Rice straw utilization may expand rural employment and provide a possibly lower cost, renewable fiber or energy product. Rice growers benefit by having straw removal as an available straw management tool. Air quality benefits as the need to burn rice straw in the field is further reduced. Currently, there are approximately 500,000 acres of rice being produced in California; the vast majority in the Sacramento Valley Air Basin. Rice straw production averages about 2 to 3.5 tons per acre.
CDFA will begin accepting applications for the tax credit for rice straw purchased during the 2007 calendar year on a first-come-first-served basis on Wednesday, December 5, 2007 at 8:00 am. Applications may be submitted either in person or by mail to the CDFA Cashier, 1220 N Street, Room 140, Sacramento, California 95814. Each application will be date and time stamped in the order received by the CDFA Cashier.
Applications received prior to 8:00 am, December 5, 2007, will not be accepted. CDFA continues to accept tax credit applications for rice straw purchased in 1997, 1998, 2000, 2001 and 2002.
For questions or additional information on the Rice Straw Tax Credit Program, contact Steve Shaffer, Program Administrator, by E-mail: sshaffer@cdfa.ca.gov or phone: (916) 657-4956.