(Taken from www.coalitionfore85.org)
Congress has already designated E85 as an alternative fuel, in the Energy Policy Act of 1992. However, E85 was not included in the tax credit commonly used for other alternative fuels (the Alternative Fuel Credit) in order to avoid any instance when ethanol would receive both that credit and VEETC
With the expiration of VEETC however, this potential double dipping is no longer an issue. E85 should be eligible for the Alternative Fuel Credit, similar to compressed natural gas, propane and hydrogen
As opposed to extending VEETC for all ethanol blends, including E85 in the Alternative Fuel Credit can be done at a fraction of the cost (about one percent of the cost of VEETC) while benefiting our environment, our national security, our health and economy.