Ethanol Production Incentive

Licensed ethanol producers may receive a production incentive payment (based on available funding) of 20 cents per gallon for ethyl alcohol that is fully distilled and produced in South Dakota. To be eligible for this payment, the ethyl alcohol must be 99 percent pure, derived from cereal grains, and denatured and subsequently blended with gasoline. Also, the facility must have produced qualifying ethyl alcohol on or before December 31, 2006. Annual production incentive payments for any facility may not exceed $1 million. No facility may receive any production incentive payments in an amount greater than $10 million dollars. Cumulative annual production incentive payments may not exceed $4 million for fiscal year 2003, $5 million for fiscal year 2004, $6 million for fiscal year 2005, and $7 million thereafter. No facility may receive payments for more than 416, 667 gallons per month.