Notification of Incentive Payment for Ethanol Blend (E85), Biodiesel (B20) and Dyed Biodiesel (D20)
Legislation effective July 1, 2006 provides for an incentive payment of five cents ($.05) per gallon for E85 fuel, B20 fuel and D20 fuel to retailers or wholesalers acting as the ultimate vendor making the sale of the fuel directly to the end user of the product.
Below is a detailed description of the fuels that qualify for the incentive:
- E85 fuel is a blend of 85% fuel grade ethanol with 15% gasoline.
- B20 fuel is a blend of 20% biodiesel and 80% clear petroleum diesel.
- D20 fuel is a blend of 20% biodiesel and 80% dyed petroleum diesel.
The legislation also requires that the qualified fuel must have a selling price of at least five cents ($.05) per gallon below the lowest priced comparable 100% petroleum product offered by the incentive applicant at the same retail location.
The incentive payment will be made to the retailer or wholesaler by the Department of Revenue in the same manner as motor fuel refunds currently processed by the agency.
The incentive refund application should be submitted quarterly beginning with the quarter ending September 2006 which will cover the months of July, August and September.
Enclosed is the L-2193 Quarterly Biodiesel & Ethanol Incentive Refund Application. The refund application will require a license number for processing. If your company is licensed with the South Carolina Department of Revenue as a Fuel Vendor, you will use the Fuel Vendor license number when applying for the incentive refund. If you do not have the Fuel Vendor license, you will need to complete a Refund Registration form L-2140 and submit it with your first incentive refund application so that a refund license number can be assigned for your company.
The L-2140 Refund Registration form and additional copies of the L-2193 can be found at our website www.sctax.org, then choose Motor Fuel, then choose Forms and look for the appropriate form number.
If you have any questions or need additional information, you may contact the Motor Fuel Section at (803) 898-5751.