Domestic Fuel

Now would be a good time for legislation that would provide federal tax credits for purchases of flex-fuel vehicles, according to the head of the National Ethanol Vehicle Coalition (NEVC).

Sen. John Thune (R-SD) plans to introduce a bill this week that would let buyers of cars or trucks capable of running on up to 85 percent ethanol enriched fuel claim a $1,000 tax credit.

“As the ethanol industry approaches the pending ‘blend wall,’ Senator Thune’s legislation may be an idea whose time has come,” says NEVC executive director Phil Lampert.

According to Lampert, NEVC has discussed the idea in the past considering the federal income tax credits that are provided to vehicles that are capable of operating on propane, natural gas, electricity, and hybrid vehicles but had decided not to push the issue since “automakers producing FFVs don’t currently add additional costs to the retail price of these products.”

Thune, who was among a bipartisan group of Senators that sent a letter last week to Environmental Protection Agency Administrator Stephen Johnson supporting the Renewable Fuels Standard (RFS), says his legislation would encourage consumers to buy more flex-fuel vehicles, which would in turn increase demand for E-85 and blender pumps.