CLAYCOMO, Mo. -- Gov. Matt Blunt says he will push for tax incentives designed to increase the use of E85, a blend of 85 percent ethanol and 15 percent gasoline. His proposals will go to the Missouri Legislature, which starts its next session on Wednesday.
Blunt held a news conference on Thursday at the Ford plant in Claycomo, a suburb of Kansas City. The plant makes Escape Hybrids, which are capable of running on electric batteries or gasoline engines. Ford is testing E85-capable Escape Hybrids in a handful of states.
One of Blunt’s initiatives would provide $2 million in tax credits to increase the number of Missouri gas stations able to sell E85. The tax credits would offset some of gasoline dealers’ costs of installing or modifying pumps to sell E85. Blunt’s office says, of 4,312 gasoline stations in the state, only 92 can sell E85.
Blunt also proposes state income tax deductions for people who buy gasoline-electric hybrid vehicles. The deduction would be $1,500 or 10 percent of the purchase price of the vehicle, whichever is smaller.
Another of the governor’s proposals is for state income tax credits for people who buy E85. The credits would be 25 cents per gallon in the first year, 20 cents per gallon in the second and third years, and 15 cents per gallon after that, with a maximum of $500 per taxpayer per year.
The governor’s office calculates the tax credit, if it had been in effect in 2007, would have saved E85 users an average of 70 cents per gallon over pure gasoline.