Missouri Gov. Blunt Proposes Tax Incentives for Ethanol Use
January 7, 2008
• by Staff
KANSAS CITY, Mo.
--- Missouri Gov. Matt Blunt on Thursday, Jan. 3, introduced a package of tax incentives aimed at bolstering consumer use of ethanol and hybrid vehicles.
Blunt unveiled his plan while addressing workers at Ford Motor Co.’s assembly plant in Kansas City. He said he will push for its passage after state legislators convene later this month.
The plan includes $2 million in tax breaks for gas stations adding E-85 pumps. Moreover, a driver operating a vehicle on E-85 would qualify for up to $500 in annual tax credits. Blunt’s proposal also calls for a 10 percent, or up to $1,500, state income tax deduction for consumers who buy hybrid vehicles, the Associated Press reported.
Blunt said that today, only 92 of the state's 4,312 gas stations are equipped to sell E-85. The price of replacing or retrofitting pumps and fuel tanks to accommodate E-85 can be as high as $40,000.
“When combined with our efforts that we’ve already undertaken to increase alternative energy production, these incentives will help to boost our efforts to create a healthier environment and a stronger economy,” Blunt said.
On Jan. 1, a new Missouri law went into effect mandating that nearly all gasoline sold in the state contain at least 10 percent ethanol.
Originally posted on Fleet Financials