Missouri Senate Endorses Biofuel Tax Breaks, Mandate
Last Thursday, Missouri’s Senate, seeking to boost alternative fuels production and consumption, endorsed a biofuel mandate and new tax breaks for motorists who pump ethanol or biodiesel fuels into their gas tanks.
The bill endorsed last week would apply a 5% biodiesel mandate to diesel fuel sold in Missouri beginning in April, 2009 - unless the price of ethanol exceeds the price of traditional diesel. Sen. Bill Stouffer is sponsoring the legislation, which received first-round Senate approval.
Also receiving preliminary approval was a bill by Sen. Luann Ridgeway granting a variety of tax breaks, including income tax credits up to $20,000 or 20% of the cost - whichever is less - for gas stations that install tanks and pumps for alternative fuels. In addition, beginning in 2008, Missouri residents who buy a hybrid vehicle could claim an income tax credit of up to $1,500 or 10% of the purchase price - whichever is less - and in 2008 only, Missouri would waive the sales tax for purchases of E-85-equipped vehicles.
Already in place in Missouri is a law mandating that most Missouri-sold gasoline contain a 10% ethanol blend beginning next January - as long as its price is cheaper than regular gasoline.
The bill, according to the Associated Press, is generally supported by Missouri’s agriculture community, which is supplying more corn and soybeans to new ethanol and biodiesel production plants proliferating throughout the state.