Ethanol Fuel in Hawaii - Tax Benefits and Constraints

Tax Benefits and Constraints

Food-based ethanol projects have had financial difficulty, because the incentives from the Farm act of 2008 emphasize cellulosic biomass to ethanol. Incentives include a $1/gallon tax credit, loan guarantees, and grants or funds available for small operations. State incentives include tax incentives and a business development department. Second generation ethanol is a priority for permitting by health officials.

A 100% state tax credit for high tech and new generation ethanol may be reduced or abolished.

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