Magna Carta News
Friday, July 22, 2005
New Ethanol Tax Credit Signed Into Law
FOR IMMEDIATE RELEASE: Contact: State Rep. Mike Jackson Capitol: (405) 557-7317 Enid: (580) 242-0069 New Ethanol Tax Credit Signed Into Law OKLAHOMA CITY (July 21, 2005) - A new law giving tax credits to Oklahoma ethanol producers to help make the alternative fuel more attractive to consumers was signed into law yesterday. House Bill 1556, by Rep. Mike Jackson, provides an income tax credit to ethanol facilities that meet a minimum production rate, and provides an additional 16-cent credit against fuel excise taxes for every gallon of ethanol fuel sold by a retail dealer. "By pursuing the increased production and use of ethanol within Oklahoma, we can help create opportunities for Oklahomans to control their own destiny, rather than be forced to depend on energy sources that they have little to no control over," said Jackson, R-Enid. Production of ethanol, a blend of gasoline and ethyl alcohol, has risen over the years, particularly in rural states, as consumers and industry leaders have sought ways to reduce dependence on imported oil. Jackson said that ethanol provides consumers with an alternative fuel choice, and that if Oklahomans can encourage production and use of ethanol, the state can begin to produce some of its own transportation fuel. He also noted that in some states, ethanol fuel production has helped to support rural economies. Under HB 1556, an ethanol fuel retail dealer could claim a refund for the credit, provided the claim is supported by documentation that the retail price for each gallon of ethanol fuel sold was reduced by the amount of the credit, and that the savings were passed on to the consumer. -30-
