Does it take more energy to produce a gallon of ethanol for E85, than the energy we get out of it?

No. This has been a common misconception of the ethanol industry, that it takes more energy to make ethanol than is available to the final consumer. Remember, ethanol is produced from plant matter, today dominated by corn, wheat, potatoes, sorgum, etc. Plants grow through the use of energy provided by the sun and are a renewable resources. In the future, ethanol will be produced from waste products or "energy crops."