Ethanol Motor Fuel Production Tax Credit

Ethanol fuel producers may redeem a tax credit of $0.40 per gallon with the Wyoming Department of Transportation. Ethanol blended motor fuel is defined as a blend of 10% ethanol and 90% gasoline that is used to operate motor vehicles. To be eligible to receive this credit, at least 25% of an ethanol producer's distillation feedstock purchases must be products that originate in Wyoming, excluding water, during the year the tax credits were earned. The total credits redeemed by all ethanol producers may not exceed $4 million per year, and the total credits redeemed by any individual ethanol producer may not exceed $2 million per year.

Additionally, an ethanol producer constructing a new ethanol production facility may receive tax credits for a period not to exceed 15 years after the date that construction is completed. Any ethanol producer that expands its production by at least 25% is eligible for tax credits with an increased maximum amount. Qualifying ethanol producers may only receive a tax credit through June 30, 2009.

(Reference Wyoming Statutes 39-17-109 and 40-7-102)