Ethanol Production Incentive

Summary

New ethanol facilities in Nebraska producing at a minimum rate of 100,000 gallons annually, before denaturing, on or before June 30, 2004 are eligible to receive a transferable fuel tax credit of 18 cents per gallon for 96 consecutive months if they were not in production on or before September 1, 2001. Payments begin with the first calendar month for which the facility is eligible to receive such credit and end not later than June 30, 2012. Facilities are eligible to receive payments for 48 consecutive months until June 30, 2008 if the facility did not received credits prior to June 1, 1999. Up to 15,625,000 gallons of ethanol produced annually at a facility and up to 125,000,000 gallons of ethanol produced at a facility by the end of the payment period are eligible for credits. Previously, facilities expanding production were eligible to receive a credit of 7.5 cents per gallon of ethanol, before denaturing, for new production for up to 36 consecutive months. However, this credit expired on December 31, 2003.