The reason the Coalition is getting together now and growing (The Society of Independent Gasoline Marketers of America is a new member) is that the Volumetric Ethanol Excise Tax Credit (VEETC, a per-gallon subsidy) is set to expire at the end of the year. Since ethanol producers were getting a tax benefit through VEETC, the IRS did not want producers "double-dipping" into the alternative fuel tax benefits. That makes an odd sort of sense. Once the VEETC expires, the ethanol industry wants to make sure it can still get some federal money – just for the next five years, apparently – to keep making corn ethanol.
Speaking with , a tax code specialist who is working with the Coalition, Jeff Trinca, said, "What we're basically saying is we would like E85 to be included in the definition of alternative fuels with propane, natural gas and others so there's a level playing field."
Read more about the coalition's efforts here.