With ever-tightening budgets and increased demands for cost cuts, MicroFuelerTM systems give governments the opportunity to control their own fuel destiny:
• It can help municipalities reduce landfill strain and expense by converting much of the waste into organic fuel.
• Price or supply fluctuations will no longer wreak havoc with budgets.
• Controlling the source and dispensation of fuel enhances budget tracking and simplifies cost analysis.
Government Support
A conservation trend in both US state and federal governments have resulted in the long-term support of ethanol use. Ethanol is the current viable energy alternative to fossil fuels – a sustaining energy answer for today and the foundation for providing future generations with their own cleaner, renewable energy.
There are many measures employed by state governments and by the federal government to advance the production and use of ethanol fuel in the United States. Many states, along with the federal government, currently employ various incentive programs designed to encourage ethanol fuel development.
Federal Government
Since 1978 the U.S. government has continuously maintained national tax incentives to encourage ethanol fuel production and use. These incentives apply to all ethanol produced for fuel except ethanol produced from petroleum, natural gas, coal (including peat), or any derivative or product of these items, and alcohol that is less than 190 proof.
The federal ethanol incentives are provided in the form of a motor fuel excise tax exemption or an alternative income tax credit, along with an additional income tax credit for small ethanol producers. There is also a tariff on imported ethanol that gives domestic ethanol producers a competitive advantage over foreign producers.
State Governments
Ethanol is a valuable contributor to our states’ transportation energy supply. It provides increasing value in the form of:
• Octane enhancement
• Carbon monoxide reduction
• An increasing supply availability from domestic sources at a favorable after-tax price,
• Infrastructure investments being made to facilitate its use.
Numerous states have begun offering tax credits or grant subsidies to defer the costs of ethanol production. All of these contribute to support an ongoing role for ethanol in states’ gasoline markets.
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