Idaho E85 Laws and Incentives

State Incentives

Biofuel Fueling Infrastructure Tax Credit

For taxable years beginning on or after January 1, 2007, and before December 31, 2011, qualified biofuel fueling infrastructure is eligible for a credit of up to 6% of the qualified investment against the corporate income tax. The allowable credit cannot exceed 50% of the income tax liability of the taxpayer. For the purpose of this incentive, biofuel is defined as any fuel offered for sale as a transportation fuel that is agriculturally derived and meets applicable ASTM standards including, but not limited to, ethanol, ethanol blended fuels, biodiesel, and biodiesel blended fuels. (Reference Idaho Statutes 63-3029M)

Biofuels Tax Deduction

Licensed motor fuel distributors may be eligible for a tax deduction based on the renewable content of the fuel. For pure biodiesel (B100), distributors may deduct the number of gallons sold to any person other than a licensed distributor during the tax reporting period. For a biodiesel blend, distributors may deduct the number of gallons of biodiesel contained in the blend that was imported, blended, or received from a licensed distributor who is a biodiesel producer during the tax reporting period; in the case of a licensed distributor who is also a producer, the deduction is only available when the producer sells biodiesel blends to a person who is not a motor fuel distributor licensed in Idaho. For ethanol blended fuel, distributors may deduct the number of gallons of denatured anhydrous ethanol contained in the fuel. The deduction may not exceed 10% of the volume of blended ethanol or biodiesel reported. (Reference Idaho Statutes 63-2407)

State Laws and Regulations

Biofuel Fueling Infrastructure Grant Fund

The Rural Idaho Economic Development Biofuel Infrastructure Matching Grant Fund (Fund) is established to provide grants for up to 50% of the cost of installing new fueling infrastructure dedicated to offering biofuels for retail sale, or for upgrading existing fueling infrastructure in order to be compatible with biofuels for the purpose of offering biofuels for sale. The Fund will be administered by the Energy Division of the Department of Water Resources and expires on July 1, 2012. (Reference Idaho Statutes 42-1806)

Ethanol Blended Fuel Definition

Ethanol blended fuel, such as gasohol, is defined as any gasoline blended with 10% or more of anhydrous ethanol. (Reference Idaho Statutes 63-2401)