Governor Pritzker Boosts Corn Farmers with New Law: Tax Incentives for Cleaner Ethanol Fuels

June 8, 2023

On Wednesday, Governor J.B. Pritzker supported Illinois corn farmers by signing into law a Revenue Omnibus package that includes sales tax incentives for higher blends of ethanol purchased in Illinois.
 

The IL Corn Growers Association applauds the Governor and Senator Patrick Joyce (D-Essex), who sponsored the original bill, for their continued support of cleaner energy through biofuels. Recently, the Governor was also a national leader in supporting the year-round sale of 15 percent ethanol blended fuel.
 

“Ethanol blends are cheaper, cleaner fuels that boost the Illinois economy. We are so grateful to Gov Pritzker and the Illinois General Assembly for recognizing these benefits and passing a tax incentive that will save consumers even more money at the pump,” said Fairfield farmer and IL Corn Growers Association President Matt Rush. “Illinois corn farmers have advocated for this policy for a long time; we should feel great getting it over the finish line.”


The ethanol incentives established in SB 1963 (Public Act 103-0009) will reduce the percentage of retail sales tax on E15 blends by 10 percent; mid-range blends by 20 percent; and reauthorizes the 100 percent reduction of sales tax for majority blended ethanol fuels (E-85). The tax incentives will sunset on December 31, 2028.


Sen. Joyce’s bill complements the federal government’s recent investments in renewable fuels, including funding to encourage fuel retailers to upgrade their equipment to dispense fuel with higher blends of ethanol.


“This is just a win-win situation for our state,” said Sen. Joyce. “It helps farmers by increasing corn demand and supports our environment by incentivizing the usage of cleaner-burning fuels.”

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