May 17 , 2006

ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT

Press Release

In August of 2005, President Bush signed the Energy Policy Act of 2005. The act provided for the first ever federal income tax credit for the installation of E85 fueling systems. The infrastructure development provision provides a 30% federal income tax credit, up to $30,000 per property, to install alternative fuel dispensing systems. In May of 2006, the Internal Revenue Service (IRS) published Form 8911 Alternative Fuel Vehicle Refueling Property Credit.

Phil Lampert, Executive Director of the National Ethanol Vehicle Coalition (NEVC) stated, “The adoption of an infrastructure development credit in the Energy Bill has been the highest priority of the NEVC for the past four years. Additionally, we were concerned with the initial manner in which the IRS interpreted the law, but this final form clearly reflects the intent of the Congress that a vendor with multiple sites be able to utilize the credit at each property being upgraded to dispense E85.”

“We believe that this new incentive will provide a significant boost to E85 fueling stations across the country and ease operators’ concerns about the initial cost of the equipment,” added Lampert.

“ Nebraska fuel marketers can now use the federal incentive to mitigate the risk of adding new E85 fueling sites. As strategic marketing alliances and new fuel outlets become available we should see a significant increase in the availability of E85 in Nebraska,” said Todd Sneller, past chair of the NEVC.