Taxing Ethanol Fuel Transactions
The most tenured of the popular alternative fuels, ethanol is blended with 97% of all gasoline sold at retail. Ethanol is derived from sugars, starches and cellulosic matter found in plants. It is often uniquely identified as the fuel made from corn. Classified as a biofuel, ethanol producers are able to take advantage of tax credits, loans and other government incentives.
- State mandates on amount of ethanol blended into gasoline
- Tax rules for blending
- Varying points of taxation along the supply chain
- Tracking state and local tax regulations
- Government loan program taxation
- Changing rates, rules and forms
- Effective 8/30/15, all gasoline sold or offered for sale in Minnesota must contain at least 20% ethanol (E20), unless, by 12/31/14, ethanol has already replaced 20% of all motor vehicle fuel sold in the state, or EPA has not granted approval for the use of E20 in all vehicles regardless of model year.
- Rural Energy for America Loans & Grants – grants funding to agricultural producers to purchase or install renewable energy systems, including ethanol.
- Iowa taxes ethanol at 29¢/gallon, while Illinois and Texas do not tax it all, and North Carolina taxes it at 36¢/gallon.
The Avalara Solution
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Returns Excise Enterprise
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- Businesses with less than 500 transactions per month
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Browse Our Resources On Ethanol
View our free resources on ethanol. A one-time registration is required.