Bill Would Provide Tax Credit for Flex Fuel Vehicles

Sen. John Thune (R-SD) plans to introduce a bill this week that would let buyers of cars or trucks capable of running on up to 85 percent ethanol enriched fuel claim a $1,000 tax credit.

Thune says we can’t conserve our way out of our dependence on foreign oil, “We’ve got to start taking steps to diversify our fuel supply.”

According to an AP story out of Sioux Falls, Thune’s bill would allow consumers purchasing an optimum flexible fuel vehicle - which runs on E-85 with an improved fuel economy similar to that of a gasoline-powered ride - to claim a $1,500 tax credit.

Thune, who was among a bipartisan group of Senators that sent a letter last week to Environmental Protection Agency Administrator Stephen Johnson supporting the Renewable Fuels Standard (RFS), says his legislation would encourage consumers to buy more flex-fuel vehicles, which would in turn increase demand for E-85 and blender pumps.