Ethanol tax credit.

11LSO-0457.L1

                                                         

FISCAL NOTE

 

FY 2012

FY 2013

FY 2014

NON-ADMINISTRATIVE IMPACT

 

 

 

Anticipated Revenue Increase (Decrease):

 

 

 

HIGHWAY FUND            

1,293,750

1,293,750

1,293,750

COUNTIES             

618,750

618,750

618,750

MUNICIPALITIES

337,500

337,500

337,500

ETHANOL TAX CREDIT       

(2,250,000)

(2,250,000)

(2,250,000)

NET IMPACT

0

0

0

 

Source of Revenue Increase: 

Decrease in the amount of ethanol credits diverted from the Department of Transportation and local governments from gasoline tax revenue to ethanol producers. 

 

Assumptions: 

  1. This bill decreases the current amount of ethanol tax credits given to ethanol producers for the production of ethanol in Wyoming from forty cents ($.40) per gallon to ten cents ($.10) per gallon.

 

  1. An average of approximately three million dollars in ethanol credits have been given to one ethanol producer over the last two years. Thirty million eight hundred and thirty two thousand eight hundred twenty dollars and eighty cents ($30,832,820.80) have been given over the life of the ethanol credit program.  Reducing the credit amount from forty cents ($.40) to ten cents (.10) per gallon of ethanol will redirect an estimated two million two hundred fifty thousand ($2,250,000) of the ethanol subsidy back to the standard gasoline distribution formula.  Fifty-Seven and one half of one percent (57.5%) will go to the State Highway Fund, twenty seven and one half of one percent (27.5%) will go to the counties and fifteen percent (15%) will go to the municipalities.

 

  1. The language in this bill does not change the total amount of ethanol credits made available to all ethanol producers.  Therefore, if more ethanol producers entered the market in Wyoming, or more ethanol is produced by the existing producer more ethanol credits could be paid up to the four million ($4,000,000) statutory ethanol credit limit per year.

 

  1. The above estimates are based strictly on ethanol being produced in Wyoming over the past two years.

 

Source of Revenue Decrease:

A reduction in the ethanol tax credit from forty cents ($.40) per gallon to ten cents ($.10) per gallon.

 

Prepared by:   Matthew Sackett, LSO   Phone: 777-7881

(Information provided by Kevin Hibbard, Department of Transportation;

Phone: 777-4026)