Tax Incentive for Production of Alcohol

June 08, 2004


There is a 30 cents a gallon tax incentive for alcohol produced in Montana from 100 percent Montana agricultural products, including Montana wood or wood products. The amount of the incentive is reduced proportionately if agricultural or wood products not from Montana are used in the production of the alcohol. Total payments of the incentive can’t exceed $6 million in any consecutive 12-month period. An individual alcohol distributor can’t receive incentive payments exceeding $3 million in any consecutive 12-month period. These benefits are available until July 1, 2010. To receive the incentive payments, an alcohol distributor must provide a written plan to the Department of Transportation at least 24 months before the anticipated collection of the incentives. The plan must contain information on the source or sources of financing for the acquisition of the plant, land, and equipment used for the production of gasohol; the anticipated source of agricultural products used in the production of gasohol; and the anticipated time, quantity, and duration of production of gasohol.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Montana
Incentive Type: Performance-Based Incentive
Web Site:
Administrator: Montana Department of Transportation
Start Date:
Eligible Renewable/Other Technologies:
Incentive Amount: $0.30 per gallon
Maximum Incentive: $3 million in any consecutive 12-month period
Terms: Provide a written plan to DOT 24 months prior


Name: 15-70-522 MCA
Expiration Date: 7/1/2010


Name: Patricia Saindon
Organization: Montana Department of Transportation
Address: PO Box 201001
Helena MT 59620-1001
Phone: (406) 444-3143
Name: Information Specialist - MT Dept. of Rev.
Organization: Montana Department of Revenue
Address: P.O. Box 8018
Helena MT 59604-5805
Phone: (406) 444-6900

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.