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Indiana > State Incentives

Ethanol Production Tax Credit

An ethanol producer located in Indiana is entitled to a credit of $0.125 per gallon of ethanol produced, including cellulosic ethanol. The Indiana Economic Development Corporation must review and approve applications for this credit. The credit granted to a single taxpayer may not exceed the following amounts for all taxable years:

Tax CreditAnnual Production
$2 millionMore than 40 million and less than 60 million gallons of grain ethanol
$3 millionAt least 60 million gallons of grain ethanol
$20 millionAt least 20 million gallons of cellulosic ethanol

Any unused credit may be carried forward for the following taxable years. As of March 2011, no funds have been appropriated for this incentive.

(Reference Indiana Code 6-3.1-28)