Michigan Farmers Union is one of many groups trying to get a retail tax credit for higher biofuel blends. Bob Thompson, president of the Michigan Farmers Union, says higher blends would be good for many stakeholders.
“We would like to see a higher blend available nationwide, particularly in Michigan and some of our other corn-oriented states to try to boost not only farm income, but the low carbon, high octane components that ethanol blends give to the fuel we use,” he says.
These groups are working with the Michigan Senate Ag Committee to enact a law that would provide tax credits for retailers. The goal is make it economically feasible for retailers to offer these blends.
“We’re trying to encourage them to consider a temporary, targeted incentive for a period of time from 2022 to 2025 that would provide Michigan retailers, number one, a five-cent tax credit for each gallon of E-15 sold, and an eight-and-a-half-cent tax credit to retailers for each gallon of E-85 fuels sold,” says Thompson.
By having this legislation, Thompson thinks it will help gas stations have the proper infrastructure so consumers will take advantage of biofuels.
“We believe that once consumers have the opportunity to make that choice, they will choose the less expensive, higher octane, more environmentally-friendly fuel than traditional gasoline.”
