With the near future of ethanol looking bright in the United States, is it surprising that many state governments are starting to get a little sultry as they try to lure investors looking to build plants in their state? Not at all, as the Southeast Missourian reported recently.
For example, Missouri has the Ethanol Producer Incentive Fund, "which provides ethanol producers $0.20 per gallon for the first 12.5 million gallons and $0.05 for the second 12.5 million gallons. An ethanol plant could get up to $3.125 million annually from that fund", the paper said.

Earlier, Illinois Gov. Rod Blagojevich announced a long-term, $1.2 billion alternative fuel plan, with $225 million going to alternative fuel plants. And yesterday, Michigan Gov. Jennifer Granholm announced a quarter-million dollar investment in converting pumps to biofuel pumps.

I got curious as to what other states were offering, and found these ethanol incentives:
  • Maryland. Last year, ethanol producers were treated to a $0.20/gal credit for ethanol produced from small grains and $0.05/gal credit for ethanol produced from other agricultural products.
  • Wyoming. There's a 40-cent-per-gallon ethanol production credit, even on E10.
  • Maine. A nickel per gallon tax credit on all production of all biofuels.
Basically, states across the nation are making all sorts of deals to increase biofuel production. You can see every biofuel law on the books at this EERE site. Oh, and let's not forget that the U.S. federal government is giving out a generous 51-cent-a-gallon incentive through the end of 2010.

[Source: SE Missourian, EERE]

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