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Senators Support E85 Tax Credit

Eleven senators send a letter to Secretary John Snow to expedite rulemaking for E85 infrastructure credits.
Compiled by staff 
Published: Jan 20, 2006

Eleven U.S. senators have recently signed a letter in support of the Alternative Fuels Infrastructure Tax Credit that was enacted January 1, 2006. The letter urges Treasury Secretary John Snow to expedite the IRS guidance and rulemaking so that the new credit may be used by fuel retailers to install E85 infrastructure.

The infrastructure credit provision was included in the Energy Policy Act of 2005 that was signed by President Bush late last summer. The E85 provision of the bill will allow a retailer to receive a 30% income tax credit up to $30,000 for infrastructure of the alternative fuel.

The U.S. senators who signed the Snow letter include: Illinois Senators Barack Obama and Richard Durbin, Missouri Senator Jim Talent, Indiana Senators Richard Lugar and Evan Bayh, Iowa Senator Tom Harkin, Colorado Senator Ken Salazar, Connecticut Senator Joseph Lieberman, Kansas Senator Sam Brownback and Minnesota Senators Norm Coleman and Mark Dayton.

"We are extremely pleased that this bipartisan group of senators have again indicated their support of the alternative fuel infrastructure development program," says Phil Lampert, Executive Director of the National Ethanol Vehicle Coalition. "There are many fuel retailers that are awaiting the direction of the IRS prior to moving forward with their E85 infrastructure plans. We are hopeful that this letter will encourage the rapid implementation of the IRS guidance."



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