Coalition for E85 Urges Retention of Ethanol Tax Credit

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October 12, 2011

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by Cindy Zimmerman (DomesticFuel.org) A coalition of retailers, producers, equipment manufacturers have formed the Coalition for E85with the stated purpose of protecting consumer access to 85% ethanol blends.

According to the coalition, if the current tax credit for ethanol expires at the end of the year and is not renewed, Flex Fuel vehicle (FFV) drivers could end up paying up to 38 cents more per gallon for E85. This increase they say will force many small businesses that have invested more than $100 million in E85 infrastructure to close their pumps.

“E85 is not only an alternative fuel, it is our nation’s most widely adopted alternative fuel,” said Matt Horton, CEO of Propel Fuels, one of the lead members of the Coalition for E85. “If we are to make a meaningful dent in our dependency on foreign oil, we must expand E85 infrastructure and ensure this fuel has fair tax treatment.” READ MORE and MORE (Convenience Store News)

Excerpt from Convenience Store News: The new coalition urges the IRS to recognize E85 as a true alternative fuel such as natural gas or propane and not an additive. It also supports the development, commercialization and innovation of biofuels, and is pushing for the inclusion of E85 in a group of alternative fuels that receive a 50-cent-per-gallon tax credit. READ MORE

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