Tax Rate on Ethanol or Methanol

June 08, 2004


California does not have a formal state excise tax exemption for alcohol fuels. However, the prevailing state excise tax rate for alcohol fuels (both ethanol and methanol) of 85% or more is legislatively set at 9 cents per gallon, vs. 18 cents per gallon for gasoline.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: California
Incentive Type: Corporate Tax Exemption
Web Site:
Administrator: California Franchise Tax Board
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Thermal Process Heat
Incentive Amount: $0.09


Name: Cal Rev & Tax Code § 8651.8


Name: Tax Specialist - FTB
Organization: California Franchise Tax Board
Address: PO Box 942840
Sacramento CA 94240-0040
Phone: (800) 852-5711
Name: Pat Perez
Organization: California Energy Commission
Address: 1516 Ninth Street, MS-29
Sacramento CA 95814
Phone: (916) 654-4527

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.