| State |
State Excise Tax Exemption |
State Producer Credits |
Special Information |
| Alaska |
$.06 per gallon tax exemption |
No producer credit |
Tax exemption applies only in Anchorage and only during the winter months. No sunset. |
| Connecticut |
$.01 per gallon tax exemption |
No producer credit |
No sunset |
| Hawaii |
4% tax exemption |
No producer credit |
No sunset
Other: Administrative rules signed 9/20/04 require that beginning 4/06, 85% of all gasoline sold in the state must contain 10% ethanol. Implements the ethanol requirement originally included in legislation signed in 1994. |
| Idaho |
Tax exemption is to equal the amount of ethanol blended in a gallon of gasoline - not to exceed 10%. Average exemption is $.023 per gallon. |
No producer credit |
No sunset |
| Illinois |
2% sales tax exemption - average exemption is $.01 to $.015 per gallon. Extended in 2003 to include E85 and biodiesel. |
No producer credit |
A $15 million grant fund, the Renewable Fuels Development Program, was created in 2003 to support the construction of new ethanol/biodiesel plants and expansions; to qualify, a project must increase capacity by at least 30 million gallons per year (mgy). Sunsets in 2013; gradually reduces to zero after 12/31/13. |
| Indiana |
No tax exemption |
$.125 per gallon producer credit |
Credit applies to facilities that increase production by at least 40 mgy. Total per facility not to exceed $5 million for all taxable years. Total program not to exceed $10 million. |
| Iowa |
$.01 tax exemption |
No producer credit |
Sunset 2007; Income tax credit available to retailers who sell more than 60% ethanol-blended fuel at their station, including E85.
Other: State fleet vehicles shall operate on 10% ethanol blends when commercially available. |
| Kansas |
No tax exemption |
Average $.07 per gallon producer credit |
Provides $.05 per gallon for producer in operation prior to July 1, 2001 during FY 2002-2004. Increased capacity of 5 mgy or more on-line on or after July 1, 2001 receives $.075 per gallon, limited to 15 mgy. Producers who begin production on or after July 1, 2001 are eligible for $.075 per gallon, limited to 15 mgy.
Other: State's bulk fuel purchases for use in state motor fleet shall contain 10% ethanol, unless ethanol-blended fuel costs more than $.10 per gallon more than conventional fuel; same requirement for individual fuel purchases for fleet vehicles. |
| Maine |
Renewable fuels including ethanol and biodiesel produced in the state are exempt from state's motor fuel excise tax. |
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| Maryland |
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$.20 per gallon producer credit for ethanol produced from small grains (winter grain); $.05 per gallon producer credit for ethanol from other agricultural products. |
Maximum total payment of $3 million/year for all ethanol produced. To reach maximum, would need at least 15 mgy of ethanol from small grains in a facility that began operating or expanded after 12/31/04. Sunsets 12/31/17. |
| Minnesota |
No tax exemption on 10% blend; $.058 tax exemption E85 |
$.20 per gallon producer credit; subject to reduction pending on state budget |
Producer credit applies to the first 15 million gallons per plant per year. There is a $3 million annual cap per plant. Cap is 10 years from date of plant start-up.
Other: statewide requirement to blend 10% ethanol in conventional gasoline sold in the state; legislation enacted in 2005 to increase blend requirement to 20% beginning in 2013 if waiver is received from US EPA. |
| Mississippi |
No tax exemption |
$.20 per gallon producer credit |
Maximum payment of $6 million per producer of anhydrous ethanol and $37 million total per fiscal year. Provides formula for credit for production of "wet" alcohol. Sunset is June 30, 2015. |
| Missouri |
No tax exemption |
$.20 per gallon applies to the first 12.5 million gallons.
$.05 per gallon to the next 12.5 million gallons produced. |
Producer credit applies to the first 60 months of plant production |
| Montana |
No tax exemption |
$2 million per plant, per year producer incentive |
To receive producer incentive, plant must use Montana produced grains: 20% in first year of production, 25% in 2nd year, 35% in 3rd year, and increasing by 10% per year until plant uses 65% Montana grains.
Other: Provides for 10% ethanol mandate within 15 months of the state producing 40 mgy. Exempts 91 octane. |
| Nebraska |
No tax exemption |
No producer credit |
$.18 producer incentive program expired in June, 2004. |
| North Dakota |
No tax exemption |
$.40 per gallon producer credit |
2005 legislation establishes producer payments for 2005-07 biennium (and not beyond) for plants that were in operation by 7/1/95 (less than 15 mgy = $900,000 and greater than 15 mgy = $400,000). Also provides incentives for increased production by the lesser of 10 mgy or 50%.
Other: Exempts E85 from all but $.01 per gallon of state's fuel tax, up to 1.2 million gallons. |
| Oklahoma |
No tax exemption |
$.20 per gallon producer credit |
For production in place between 12/31/03-12/31/06. Maximum of $25 million per facility per year, with total maximum per facility of $125 mil. Credit of $.075 for new production after 1/1/11, for up to 10 mgy per facility for 3 years. |
| Pennsylvania |
No tax exemption |
$.05 per gallon producer credit |
Up to 12.5 million gallons of renewable fuel per calendar year produced by a qualified renewable fuels producer. Money provided from state Alternative Fuel Incentive Fund. (SB 255, signed into law 11/29/04. |
| South Dakota |
$.02 tax exemption |
$.20 per gallon producer credit |
416,667 gallons per month maximum allowable to ensure equal distribution among all producers. |
| Texas |
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$.20 per gallon producer credit for ethanol and biodiesel |
Credit applies to first 18 mgy of production per plant for ten years. Imposes fee on ethanol and biodiesel producers of 3.2 cents for each gallon produced up to 18 million gallons per facility. |
| Wisconsin |
No tax exemption |
$.20 per gallon producer credit |
$3 million per year, per plant (limited to first 15 mgy) |
| Wyoming |
No tax exemption |
$.40 per gallon producer credit |
Program has a $4 million per year cap. Plants constructed after 7/1/03 eligible for 15 years. Plants in existence prior to 7/1/03 eligible until 6/30/09, unless they expand by at least 25%, in which case they are eligible for 15 years following the date of expansion. |
