Government Support

There has been much governmental support on renewable energy in the United States. The New Energy Policy Act which was enacted in 2005, states that the United States requires 7.5billion gallons of bio-fuels. Also, in President Bush¡¯s 2007 State of the Union Speech ? it mandates that 35 billion gallons of renewable fuels should be produced by 2017 and the 2008 R&D budget is at $4.3 billion dollars. The U.S Department of Energy also has an agenda which includes two new goals: 60 billion gallons of ethanol production by 2030, 30% displacement of petroleum by 2030.

The U.S government has also gone great lengths to promote ethanol by giving manufacturers a Federal Excise Tax Exemption of blended ethanol of $.51 per gallon. It also gives credit to small Federal Small Ethanol Producer tax credit which gives a federal income tax credit of $.10 per gallon and upto 15 million gallons per year. There are also various local tax credits and services in various parts of biofuel clusters.

As an example, Kansas State has exclusive in state incentives. One includes exemption of machinery and equipment sales tax and HPIP Job Creation tax incentive. Within the county, there are also incentives including: 100% tax abatement of property tax, improvements to County Road H, assist with economic development grants, incentives, subsidies, and a land grant incentive. The city also provides with incentives including water supply agreement for 60 months and many others that are still pending.