E85 Boondoggle of the Day: MO Gov's Tax Creditfest
KY3.com reports that that Missouri Governor Matt Blunt is so deep inside the ethanol industry's pockets that he's using the lint for a pillow [paraphrasing]. The Gov wants The Show Me State's legislature to craft some new E85 pork barrel filler: $2m worth of tax credits for gas stations to re-equip with E85 pumps. As we've heard that it takes $200k to convert a gas station to E85itude, Blunt is either trying to fly under the radar or doing some symbolic showboating to appease the ethanol lobby. But wait, there's more! "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." Blunt reckons that little deal would save Missouri's theoretical E85 [only] users an average of 70 cents per gallon over regular gas. Which is just as well, considering that the corn juice is some 28.5 percent less efficient than non-E85 gas.