Win for Corn Growers: Illinois Approves State Ethanol Tax Incentive
The IL Corn Growers Association worked closely with Illinois lawmakers to approve language in this year’s legislative session to create and renew retail sales tax incentives for ethanol blends.
The provision, supported by the IL Corn Growers Association, reduces the percentage of retail sales tax on E15 blends of gasoline by 10 percent; mid-range blends by 20 percent; and reauthorizes the 100 percent reduction of sales tax for E-85. The tax incentives will sunset on December 31, 2028.
“The IL Corn Growers Association applauds Gov. Pritzker and the state legislature for their continued support of Illinois agriculture,” said President of the IL Corn Growers Association and Fairfield, Illinois farmer Matt Rush. “The use of higher blends of ethanol in the marketplace helps reduce greenhouse gas emissions, lowers the price of fuel for consumers and supports Illinois family farmers and rural communities.”
The ethanol incentives were initially introduced in legislation sponsored by Senator Pat Joyce (D-Essex), and ultimately included in the revenue omnibus package (SB 1963). “When the demand for ethanol-based fuel goes up, we see the demand for Illinois corn rise as well,” said Joyce (D- Essex). “This new tax structure will not only help farmers, but it is also better for our environment.”
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. In addition, Governor Pritzker has been a national leader, supporting the year-round sale of 15 percent ethanol blended fuel.
Higher blends of ethanol in gasoline reduce carbon emissions, helping the environment; lowers fuel prices, making gas more affordable for drivers; improves engine performance and fuel efficiency with higher octane levels, and promotes energy independence for the United States.
The IL Corn Growers Association looks forward to the implementation of these incentives by Governor Pritzker and the increased demand for ethanol the legislation will bring to the marketplace.