Get Ethanol Infrastructure Incentive Program Reimbursement Request ...

In the U.S, ethanol fuel is mainly used as an oxygenate in gasoline in the form of low-level blends up to 10 percent, and, increasingly, as E85 fuel for flex-fuel vehicles. The U.S. government subsidizes ethanol production.

Under the 2007 law, there must be 36 billion gallons of biofuels blended into the nation's fuel supplies by 2022. No more than 15 billion gallons of that can be corn-based ethanol, and 21 billion gallons must be from advanced biofuels. After 2022 the EPA is granted authority to set annual targets.

Beginning January 1, 2023, fueling equipment for natural gas, propane, hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel, is eligible for a tax credit of 30% of the cost or 6% in the case of property subject to depreciation, not to exceed $100,000.

Credit amounts vary by year and blend level and apply to gallons sold in the previous calendar year. Beginning 2024, blends of 15% ethanol (E15) are eligible for $0.08 per gallon and blends of 25% ethanol (E25) and higher are eligible for $0.08 per gallon.

In general, ethanol fuel has the potential to be less expensive than gasoline due to factors such as lower production costs and government incentives. However, the actual pricing can fluctuate, and it's best to check the current prices in your specific area for an accurate comparison.

Beginning January 1, 2023, fueling equipment for natural gas, propane, hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel, is eligible for a tax credit of 30% of the cost or 6% in the case of property subject to depreciation, not to exceed $100,000.

What is the Higher Blends Infrastructure Incentive Program? The purpose of the HBIIP is to increase significantly the sales and use of higher blends of ethanol and biodiesel by expanding the infrastructure for renewable fuels derived from U.S. agricultural products.

The ethanol subsidy, which is commonly referred to as the "blender's credit," offers ethanol blenders registered with the Internal Revenue Service a tax credit of 45 cents for every gallon of pure ethanol they blend with gasoline.