Tax advantages for vehicles and fuel stations using E85 superethanol

Article 27 of the 2006 Amending Finance Act extends to E85 superethanol the tax advantages already granted to liquefied petroleum gas: 12-month accelerated depreciation of vehicles and of equipment for storing and dispensing this fuel (Articles 39 AC to 39 AF of the General Tax Code, schemes extended to 2010), VAT deduction on E85 used as fuel, exemption from the company vehicle tax for eight quarters from first registration, optional exemption from the regional registration certificate tax, and a 50% reduction of the additional CO2-based registration tax. These provisions apply to vehicles and equipment acquired or first registered from 1 January 2007.