Volumetric Ethanol Excise Tax Credit (VEETC)

Expired: 12/31/2011

An ethanol blender that is registered with the Internal Revenue Service (IRS) may be eligible for a tax incentive in the amount of $0.45 per gallon of pure ethanol (minimum 190 proof) blended with gasoline. Only entities that have produced and sold or used the qualified mixture as a fuel in their trade or business are eligible for the tax credit. The incentive must first be taken as a credit against the blender's fuel tax liability; any excess over this tax liability may be claimed as a direct payment from the IRS. This tax credit expired December 31, 2011. For more information, see IRS Publication 510 and IRS Forms 637, 720, 4136, 6478, and 8849, which are available via the IRS website. (Reference Public Law 111-312, Section 708; and 26 U.S. Code 6426)

Point of Contact
Excise Tax Branch
U.S. Internal Revenue Service Office of Chief Counsel
Phone: (202) 317-6855

Jurisdiction: Federal

Type: Incentives

Agency: U.S. Internal Revenue Service

Enacted: Oct 22, 2004

Amended: Dec 17, 2010

Technologies: Ethanol

See all Federal Laws and Incentives.