Ethanol Producer Credit

June 08, 2004


A tax credit of 20 cents per gallon (cpg) is offered to producers of ethanol for production that begins after December 31, 2003 but no later than December 31, 2006. The ethanol facility must be producing at the rate of at least 25% of its name plate design capacity for the production of ethanol on or before December 31, 2006 and for six months after the first month it is eligible for the tax credit. Tax credits are available for up to 25 million gallons per year (mgy) per facility for up to 5 years. Producers may not claim credits after December 31, 2010. Beginning January 1, 2011, ethanol facilities can receive a credit of 7.5 cpg for new production for up to 10 mgy for up to 3 years. New production includes new facilities, facilities not receiving credits before January 1, 2011, or expansion of capacity of existing facility by at least 2 million gallons.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Oklahoma
Incentive Type: Corporate Tax Credit
Web Site:
Administrator: Projects Plus, LLC
Start Date: 01/01/04
Eligible Renewable/Other Technologies:
Incentive Amount: 20 cents per gallon
Maximum Incentive: Credit is available for up to 25 million gallons/yr. per facility for 5 years
Carryover Provisions: Production facility must be completed by 12/31/06


Name: SB 429 (2003)
Date Enacted: 5/30/03
Effective Date: 01/01/04
Expiration Date: 12/31/10


Name: Terry Ruse
Organization: Projects Plus, LLC
Address: 8527 S. 68th E. Ave
Tulsa OK 74133-4147
Phone: (918) 493-2992
Name: Mason Mungle
Organization: Oklahoma Farmer's Union
Address: 6200 N.W. 2nd, P.O. Box 24000
Oklahoma City OK 73127
Phone: (405) 491-1594
Name: Information Specialist - OTC
Organization: Oklahoma Tax Commission
Address: Post Office Box 26800
Oklahoma City OK 73126-0800
Phone: (405) 521-3160

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.