Bill proposes tax credit for ethanol sales

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When Missouri drivers stop at a gas station to fill up, they may not think about how corn helps fuel their ride.

Often representing 10 to 85% of fuel composition, ethanol, usually derived from corn, is a major part of the daily transport of millions of people.

Rep. Kurtis Gregory, R-Marshall, has proposed House Bill 1695, which would implement a tax credit for retailers whose gas stations sell a blend of at least 15% ethanol but no more than 85%.

The credit would be equal to $0.05 per gallon of qualifying blend sold and dispensed by metered pumps at the gas station. The total amount of tax credits authorized under the bill would not exceed $5 million in any given fiscal year.

“Just think of it as a 15% ethanol blend,” Gregory said Tuesday during a farm policy hearing. “We’re taking an additional 5% of oil, much of which is overseas and imported into the country, and we’re going to add an additional 5% of ethanol that was made right here in the United States and specifically in Missouri. . “

Under the Missouri Renewable Fuel Standard Act, gasoline must contain at least 10% ethanol.

E15 blends (containing approximately 15% ethanol) are approved for use by the Environmental Protection Agency in 2001 model year and newer light-duty conventional vehicles, according to the US Department of Energy’s website.

“It’s not going to ethanol producers,” Steve Murphy, general manager of POET Bioprocessing in Laddonia and president of the Missouri Renewable Fuels Association, said during the hearing. “Both organizations fully support this bill.

“It’s also not a mandate for retailers to offer it – it’s an option,” Murphy added. “It helps them take some of the capital cost to install pumps and do upgrades and so on to make it more attractive.”

Including ethanol in gas pump blends helps reduce air pollution, according to the US Energy Information Administration website.

The tax analysis of the bill, provided by the Department of Revenue, stated: “This is a new credit, primarily for business entities (corporations, possibly partnerships and S corporations and their members) The Ministry does not currently collect information on the amount of gallons of ethanol sold at retail.The Ministry should create a form and make changes to the existing tax credit form for taxpayers to claim this credit. tax.”

Gov. Mike Parson shared his pride in Missouri agriculture and spoke about the industry’s importance Wednesday afternoon at an annual meeting and lobby day for the Missouri Corn Growers Association.

“Every time you get a tax credit, you’re trying to put more money back in people’s pockets,” Parson said in an interview after his speech. “We still want to look at the avenues we can take to get there. So I think that’s a step forward.”

• HB 1695: Tax credit for the sale of ethanol fuel

https://bit.ly/3r3KPtx

Sponsor: Rep. Kurtis Gregory


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