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E85 will be much more expensive than normal fuels without a new tax credit according to the coalition

The tax rebate on ethanol fuels is set to expire at the end of this year. This will vanquish the tax credit that allowed ethanol producers in the U.S. to export as much or more of the fuel to other countries than was used in American fuel tanks. Steven Rattner stated in a piece written for the NYT, “Because of the subsidy, ethanol became cheaper than gasoline, and so we sent 397 million gallons of ethanol overseas last year. America is simultaneously importing costly foreign oil and subsidizing the export of its equivalent.”
That exporting of ethanol is one of the reasons the tax break on ethanol is ending.
With the deadline looming for the tax credit, a coalition is forming to get federal tax law amended to allow E85 to get a tax cut. The new group will be called the Coalition for E85 and it is specific in that it isn't out to get the tax credit back for E10. The coalition will let that tax expire with no fight from its members, but it wants the E85 blend to gain a new tax cut or the coalition warns the days of E85 might be numbered.
The blenders that make E10 fuel that is in wide use, and is a mix of 10% ethanol and 90% unleaded are getting a 4.5-cent-per-gallon tax credit. E85 is getting a credit of 38.25 cents per gallon under the Volumetric Ethanol Excise Tax Credit or VEECT. This is the tax that expires in December.
What the coalition is seeking is a change that would allow the E85 blend to receive the Alternative Fuel Credit (AFC). E85 was excluded from the AFC originally to keep it from being able to qualify for both the VEECT and the AFC credits. With the VEETC being discontinued, the makers want E85 to now get the AFC credit to allow the E85 fuel to maintain closer price parity with normal fuels for consumers that drive Flexi Fuel Vehicles. Flexi Fuel Vehicles or FFVs are able to burn regular gasoline and E85.
The coalition is trying to raise $75,000 to hire a Washington lobby group to speak on its behalf.

Source: Platts

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E10 getting 4.5 cent per gallon tax credit
By drkicker on 10/18/2011 2:05:48 PM , Rating: 2
I'd happily pay the extra 5 cents a gallon for these companies to take ethanol out of my gasoline. The increase in fuel economy I would get back would easily cover that.

RE: E10 getting 4.5 cent per gallon tax credit
By FITCamaro on 10/18/2011 3:43:40 PM , Rating: 2
Actually I see no mileage difference in E10 and straight gas when driving my GTO. Granted that's a newer vehicle largely designed to run on it.

Not disagreeing with you. Just saying you likely won't see a mileage difference.

I'm not against ethanol. It just shouldn't get per gallon subsidies like they want. Nor should there be ethanol mandates from the federal government as there are now.

RE: E10 getting 4.5 cent per gallon tax credit
By mkrech on 10/18/2011 7:09:30 PM , Rating: 2
Rub it in.... ARGH!!!

I've wanted another GTO ever since my '68 died over 20 years ago.

However, I am surprised. Your moniker would lead me to think you would never roll in such glorious wheels.

By Reclaimer77 on 10/18/2011 9:32:32 PM , Rating: 2
I've wanted another GTO ever since my '68 died over 20 years ago.

If you want a GTO better get another '68 lol. I don't think the new iteration can honestly be called the GTO that you knew and loved. The new Camaro is a freaking land barge. The "Charger"...just wtf.

I mean, I hate to say it, but the Mustang is pretty much the only "muscle car" that's survived.

By fcx56 on 10/18/2011 11:06:32 PM , Rating: 2
My 2003 X5 definitely sees better gas mileage with non-oxygenated fuel, but my fuel economy was never that great to begin with. There is only one gas station in my area that supplies gas that isn't E10, I buy it for the decreased engine wear more than the fuel saving effects. I also buy it to support the gas station with my monetary vote as I'm against ethanol.

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