The bill would create a tax credit for retailers who sell alternative fuels
By Diego Flammini
A new bill introduced in Michigan could benefit farmers across the state.
Sen. Kevin Daley, chair of the Senate Agriculture Committee, introduced Senate Bill 0814 on Jan. 12.
Under the proposed bill, fuel retailers who sell biofuels would be eligible for two tax credits.
A five-cent-per-gallon credit on the sale of E15 and an 85-cent-per-gallon tax credit on the sale of E85.
These credits would be valid from Jan. 1, 2023, to Dec. 31, 2027.
This bill would provide reason for retailers to sell biofuels, also provides additional marketing opportunity for Michigan farmers.
“The goal of this legislation is to create an incentive for gas stations to offer higher ethanol blends, which will help reduce emissions, benefit Michigan corn farmers, and offer drivers additional, more affordable options at the pump,” Daley said in a Jan. 14 statement.
Michigan has five ethanol plants in the state.
The facilities produced 382 million gallons of ethanol as of Dec. 13, 2021.
The Andersons Albion Ethanol in Albion, Mich. Produced 140 million gallons, which was the most of the five plants.
Michigan’s ag sector supports the bill.
Farmers and agriculture rely on market opportunities, and this bill would provide another, said Jim Zook, executive director of the Michigan Corn Growers Association.
“This incentive will drive demand for biofuels and corn and will help them get back on their feet. Growing markets for E-15 and E-85 will generate significant new demand for Michigan corn — a game-changer for farm families looking to rebuild and reinvest after several tough years,” he said in a statement.
Multiple states already have similar legislation in place.
In Oklahoma, for example, fuel retailers selling E15 are eligible for a 16-cent-per-gallon credit.
And in Kansas, a fuel retailer is eligible for tax credits up to 65 cents for every gallon of renewable fuel and three cents for every gallon of biodiesel sold.