Ethanol Production Tax Credit

Effective July 1, 2003, any person who has a tax liability for the sale of ethanol-based motor fuel or gasoline sold for the purpose of blending into an ethanol-based motor fuel may redeem a credit of $0.40 per gallon, valid with the Wyoming Department of Transportation (DOT). Under the 2003 provisions, an ethanol producer must purchase at least 25% (previously $1,000,000) of Wyoming origin products during the year the tax credits were earned. The total credits redeemed per ethanol producer must not exceed $2,000,000 per year ($4,000,000 for all tax credits). An ethanol producer constructing a new ethanol plant after July 1, 2003, may receive tax credits for a maximum of 15 years. Producers qualifying for the tax credit on or before July 1, 2003, may only receive the tax credit until June 30, 2009, unless there is an expansion in production of at least 25%, which may increase the amount of time a tax credit may be received.