US Representatives Herseth Sandlin (D-SD) and John Shimkus (R-IL) introduced bipartisan legislation—H.R.6734, The E85 and Biodiesel Access Act—that would streamline the process and provides greater incentives for service station owners to install equipment to dispense E85 and biodiesel.
The E85 and Biodiesel Access Act would enhance the Alternative Fuel Vehicle Refueling Property Credit. Currently, the Alternative Fuel Vehicle Refueling Property credit allows gas station owners to claim a 30% tax credit for the cost of installing clean-fuel vehicle refueling property up to a maximum of $30,000. Additionally, the IRS limits the credit to the amount a dual purpose fuel dispenser exceeds the cost of equivalent conventional refueling dispensers. This has not been sufficient to speed the broad deployment of biofuel dispensing infrastructure.
The new legislation raises the amount of the credit from 30% of the cost of qualifying property to 50%, up to a maximum of $100,000, and allows station owners to claim the value for the entire cost of dual purpose fuel dispensers.
This legislation is supported by the American Coalition for Ethanol, the National Ethanol Vehicle Coalition, the Renewable Fuels Association, the National Association of Convenience Stores and the National Biodiesel Board.