Ethanol Production Incentive

Minnesota offers a production incentive of $0.20 per gallon for each gallon of ethanol produced on or before June 30, 2000, or ten years after the start of production, whichever is later. However, as a result of the passage of SF 905 (2003), this incentive has been reduced to $0.13 per gallon for ethanol produced from July 1, 2003, through June 30, 2007. Beginning July 1, 2007, the payment rate will return to the statutory amount of $0.20 per gallon. At this point, if funding is available, Minnesota will repay producers $0.07 per gallon for ethanol produced from July 1, 2003, to June 30, 2007. Payments will be made to either the original producer or the secondary processor, but not both. This incentive applies to a maximum of 15,000,000 gallons of fuel per producer per year. The maximum payment to a producer is $3,000,000 per fiscal year. No payments will be made after June 30, 2010.