Oklahoma

Oklahoma Commerce Commission, 405-521-4683

Ethanol Fuel Retailer Tax Credit

Retailers that sell fuel blends of gasoline containing up to 15% ethanol by volume (E15) are eligible for a motor fuel tax credit of $0.016 per gallon of ethanol blended into gasoline and sold in Oklahoma, as long as the retailer provides a price reduction to the purchaser of the ethanol fuel in the same amount. This incentive is effective unless the federal government mandates the use of reformulated fuel in an area within Oklahoma that is in nonattainment with the National Ambient Air Quality Standards. (Reference Oklahoma Statutes 68-500.10-1)

Ethanol Sales Tax Exemption

The portion of ethanol (ethyl alcohol) sold and blended with motor fuel is exempt from sales tax. (Reference Oklahoma Statutes 68-500.10-1 and 68-1359)

Ethanol Labeling Requirement

Motor fuel containing more than 1% ethanol or methanol may not be sold or offered for sale from a motor fuel dispenser unless the individual selling or offering the fuel for sale prominently displays a label on the pump stating the fuel "Contains Ethanol" or "Contains Methanol," as applicable. The retailer must display the label in a clear, conspicuous, and prominent way on the same side of the motor fuel pump where the price is shown. If a motor fuel pump dispenses fuel that contains at least 10% ethanol (E10) or 5% methanol, the label must also state the percentage of ethanol or methanol, respectively, by volume. In addition, the person selling motor fuel or offering it for sale must provide the following information to the fuel user if requested: 1) the percentage of ethanol contained in the motor fuel being sold; 2) the percentage of methanol contained in the motor fuel being sold; and 3) if the motor fuel contains methanol, the types and percentages of associated co-solvents in the motor fuel being sold. (Reference Oklahoma Statutes 52-347)

Ethanol Infrastructure Grants and Loan Guarantees
The Rural Energy for America Program (REAP) provides grants and loan guarantees to rural (population less than 50K) small businesses to purchase renewable energy systems or make energy efficiency improvements. Eligible renewable energy systems include equipment used to distribute flexible fuels. The maximum grant funding is 25% of project costs and the maximum loan guarantee is $25 million. The program is funded through fiscal year 2018 but is subject to congressional appropriations thereafter. For more information, see the REAP website.

Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730
http://www.rurdev.usda.gov/

Click here for a complete list of domestic ethanol producers and sales contacts for E85/direct ethanol sales