Biofuels

Biofuels are reliable sources of energy that are good for engines, as well as Indiana’s economy. They are made either from plants or animal products and the two most readily available forms of biofuels are biodiesel and ethanol. Both of these biofuels are renewable, domestically produced fuels, so they help reduce dependency on foreign oil. These products require no engine modifications, are affordably priced and are produced right here in the Hoosier state. As an added benefit, both biodiesel and ethanol reduce harmful emissions, making them the perfect fuel choice for health-conscious Hoosiers.

 

Biodiesel

Biodiesel can be used in any standard diesel engine and does not require engine modification. Biodiesel can be used by itself or blended with gasoline in varying concentrations. B100 is pure biodiesel, but B20 (20% biodiesel, 80% petroleum diesel) and B5 (5% biodiesel, 95% petroleum diesel) are common blends. Biodiesel and biodiesel blends are used by diesel engines and burn more cleanly than petrodiesel.

 

Ethanol

Ethanol used in the US is made primarily from the starch in corn grain. Ethanol is regularly blended with gasoline at low levels, but some gas stations offer E85 (85% ethanol, 15% gasoline). However, only flex fuel vehicles (FFVs) can use E85. FFVs can be fueled with unleaded gasoline, E85, or a combination of the two. Most vehicles produced after September, 2006 should be flex fuel and can handle up to 85% ethanol content. However, check whether your vehicle is flex fuel at the U.S. Department of Energy's Alternative Fuels Data Center. The easiest way to check if your vehicle takes E85 is to look for a badge on your vehicles that says "Flex Fuel' or check if your gas cap is yellow and labeled "E85/Gasoline."

For more information on biodiesel and ethanol, view our E85/B20 FAQs page.   

                                               

Find A Pump Near You

Navigate to our Find A Pump Near You page to use the map to find the closest B20 and E85 stations near you. There you can locate...

  • Indiana's 3 public B20 stations 
  • Indiana's 198 public E85 stations.
     

Tax Incentives for Biofuel Fueling Infrastructure

Special Fuel Tax Exemption: The sale of biodiesel, blended biodiesel, compressed natural gas, and liquefied natural gas used to power an internal combustion engine or motor is exempt from state gross retail tax. Read more here.

Biodiesel Blend Tax Exemption: Biodiesel blends of at least 20% (B20) that are used for personal, noncommercial use by the individual that produced the biodiesel portion of the fuel are exempt from the special fuel license tax. The maximum number of gallons of fuel for which the exemption may be claimed is based on the percentage volume of biodiesel in each gallon used. Read more here.

E85 Fuel Use Incentive: A political subdivision that purchases E85 for use in flexible fuel vehicles (FFVs) may be entitled to a monthly incentive payment of $33.33 for each FFV owned by the political subdivision for fewer than five years. The political subdivision is eligible if 75% of its motor vehicle fuel purchases were E85 in the previous month. A political subdivision is defined as a municipal corporation or special taxing district. This incentive expires January 1, 2019. Read more here.

Federal Tax Credits for Fueling Equipment: Businesses and investors who purchase biodiesel or E85 fueling equipment may receive a federal tax credit of 30% of the equipment and installation cost, up to $30,000. This incentive originally expired on December 31, 2013, but was retroactively extended through December 31, 2014 by Public Law 113-295. The incentive will remain posted until the federal tax filing deadline.

Federal Alternative Fuel Excise Tax Credit: A tax incentive is available for alternative fuel that is sold for use as a fuel to operate a motor vehicle. A tax credit in the amount of $0.50 per gallon is available for the following alternative fuels: compresses natural gas, liquefied natural gas, liquefied hydrogen, biodiesel, and propane. The credit expired December 31, 2016. The incentive will remain posted until the federal tax filing deadline.