E15 Tax Refund
Ethanol Infrastructure Incentive Program
South Dakota produces about one billion gallons of ethanol each year. And thanks to the Governor’s Office of Economic Development’s Ethanol Infrastructure Incentive Program, South Dakota fuel retailers now have another tool to help promote South Dakota’s homegrown energy.
The ethanol infrastructure incentive fund provides a tax refund for ethanol blended gasoline classified as E15 dispensed in South Dakota for calendar years 2025 to 2029. All money deposited in the ethanol infrastructure incentive fund will be used to provide fuel tax refunds to licensed marketers that demonstrate compliance with alternative fuel compatibility requirements set by the Department of Agriculture and Natural Resources. Eligible licensed marketers may claim a fuel tax refund in an amount equal to five cents multiplied by the total number of gallons of ethanol blended gasoline classified as E15 dispensed during the preceding calendar year through motor fuel pumps located on its retail premises in South Dakota.
How it Works
The licensed marketer must complete and submit the E15 Fuel Tax Refund Application to the Governor’s Office of Economic Development within thirty days after the end of the calendar year for which the refund is claimed. The following steps outline the process in more detail:
- File the application with GOED within thirty days after the end of the calendar year for which the refund is claimed.
- After GOED receives the completed application, the Commissioner of GOED will approve or deny the application within ninety days after it is filed.
- If the amount of money on deposit in the ethanol infrastructure fund is not sufficient to pay in full all the allowable tax refunds for the calendar year, the payments will be prorated among approved applicants based on each applicant’s number of gallons of E15 sold and dispensed divided by the total number of gallons of E15 sold and dispensed by all approved applicants.
How it Works
The licensed marketer must complete and submit the E15 Fuel Tax Refund Application to the Governor’s Office of Economic Development within thirty days after the end of the calendar year for which the refund is claimed. The following steps outline the process in more detail:
- File the application with GOED within thirty days after the end of the calendar year for which the refund is claimed.
- After GOED receives the completed application, the Commissioner of GOED will approve or deny the application within ninety days after it is filed.
- If the amount of money on deposit in the ethanol infrastructure fund is not sufficient to pay in full all the allowable tax refunds for the calendar year, the payments will be prorated among approved applicants based on each applicant’s number of gallons of E15 sold and dispensed divided by the total number of gallons of E15 sold and dispensed by all approved applicants.