Missouri E85 Laws and Incentives

State Incentives

Alternative Fueling Infrastructure Tax Credit

An income tax credit is available for the costs of constructing a qualified alternative fuel vehicle fueling station. The tax credit may not exceed the lesser of $20,000 or 20% of the costs directly associated with the purchase and installation of any alternative fuel storage and dispensing equipment. The total amount of tax credits claimed may not exceed $3,000,000 for taxable year 2009, $2,000,000 for taxable year 2010, and $1,000,000 for taxable year 2011. Eligible fuels include those containing at least 70% of the following alternative fuels: ethanol, compressed natural gas, liquefied natural gas, liquefied petroleum gas, any mixture of biodiesel and diesel fuel, and hydrogen. (Reference Senate Bill 931, 2008)

Ethanol Production Incentive

Qualified ethanol producers are eligible for incentives through the Missouri Ethanol Producer Incentive Fund (Fund). The Fund provides $0.20 per gallon for the first 12.5 million gallons and $0.05 for the second 12.5 million gallons of ethanol produced from Missouri agricultural products each fiscal year. The Fund is administered by the Department of Agriculture and the incentive expires on December 31, 2015. (Reference Missouri Revised Statutes 142.028 and 142.029)

State Laws and Regulations

Ethanol Blend Mandate

After January 1, 2008, all gasoline sold or offered for sale at retail stations within the state must contain 10% ethanol. This requirement is waived only if a distributor is unable to purchase ethanol or ethanol-blended gasoline at the same or lower price as unblended gasoline. Premium gasoline is exempt from this requirement. Ethanol fuel is defined as meeting ASTM specification D-4806. (Reference Missouri Revised Statutes 414.255)

Alternative Fuel Vehicle (AFV) Acquisition and Alternative Fuel Use Requirements

Effective January 1, 2008, at least 70% of new vehicles purchased for the state vehicle fleet must be flexible fuel vehicles that can operate on fuel blends of 85% ethanol (E85). Excess acquisitions of AFVs may be credited towards future biennial goals. If a state agency fails to meet a biennial acquisition goal, purchases of any non-AFVs are not permitted until the goals are met or an exemption or goal reduction has been granted. In addition, 30% of the fuel purchased annually for use in operating state fleet vehicles must be alternative fuels. (Reference Missouri Revised Statutes 414.400 and 414.410)

Alternative Fuels Promotion

The Missouri Ethanol and Other Renewable Fuel Sources Commission promotes the continued production and use of ethanol, ethanol blends, and other renewable fuel sources in Missouri. The commission reports annually to the general assembly its recommendations to the governor and general assembly on changes to state law to facilitate the sale and distribution of alternative fuels and alternative fuel vehicles; promote the development, sale, distribution, and consumption of alternative fuels; promote the development and use of alternative fuel vehicles and technology that will enhance the use of alternative and renewable transportation fuels; educate consumers about alternative fuels; and develop a long-range plan for the state to reduce consumption of petroleum fuels. (Reference Missouri Revised Statutes 414.420)

Alternative Fuel Tax

The $0.17 per gallon motor fuel tax does not apply to passenger motor vehicles, certain buses, or commercial motor vehicles that are powered by an alternative fuel. Instead, the owners or operators of such vehicles are required to pay an annual alternative fuel decal fee as follows (certain restrictions apply):

It is unlawful for any person to operate a motor vehicle that is required to have an alternative fuel decal, operate on state highways without a valid decal. No person may fuel an alternative fuel vehicles with liquefied petroleum gas (LPG) or natural gas unless the vehicle has a valid decal. Motor vehicles licensed as historic vehicles that are powered by alternative fuels are exempt from the motor fuels tax as well as the alternative fuel decal requirement. (Reference House Bill 1628, 2008, and Missouri Revised Statutes 142.803 and 142.869)