Fund to fuel ethanol use out of gas

Indianapolis Business Journal
Sat. December 27 - 2008
Chris O’Malley - comalley@ibj.com - IBJ staff

Tapped-out incentive, plunge in oil prices take bloom off E85

A state fund supporting an 18-cent-a-gallon tax credit for gas stations selling E85 ethanol was exhausted in the first three months of the state’s new fiscal year.

The timing for the alternative fuel couldn’t be worse. Gasoline prices have plummeted to around $1.50 a gallon from $4-plus this summer, making E85 and its inherently lower fuel economy less attractive to retailers and motorists.

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