(1) If any part of the credit earned in taxable years beginning after December 31, 2004, is not applied against the tax liability for the year earned, the unused portion of the credit can be carried forward to offset tax liability in the next seven periods. The credit cannot be carried forward to offset any tax year in which the facility is not primarily crushing oilseed for the production of biodiesel or biolubricant.

(2) The credit may be subject to recapture if the facility claiming the credit ceases primarily crushing oilseed for production of biodiesel or biolubricant for a period of 12 consecutive months. At the point the facility ceases primarily crushing oilseed for production of biodiesel or biolubricant, any credit claimed in the five years prior to the cease date must be recaptured.