Michigan bill aims to create tax credit for sales of E15, E85

By Erin Voegele | January 11, 2022

Legislation introduced in the Michigan Senate on Jan. 11 aims to create a tax credit for retailers that choose to sell higher ethanol fuel blends, such as E15 and E85.

The bill, introduced by State Sen. Kevin Daley, would create a 5-cent-per-gallon tax credit for the sale of E15 and an 8.5-cent-per-gallon credit for the sale of E85, according to a statement released by Daley. Both credits would expire after five years unless renewed by the legislature.

“Biofuels are a major economic engine for rural communities across Michigan, and they help position our state to rely less on foreign oil,” Daley said. “This legislation will help accelerate Michigan’s biofuel production and ultimately provide cleaner and cheaper fuel that is locally grown and produced.”

“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,” he continued.

Gabe Corey, general manager of Carbon Green BioEnergy and industry representative on the Michigan Corn Growers Association Board, welcomed the introduction of the bill. “With so much uncertainty at the federal level, it’s more important than ever for Michigan lawmakers to promote new markets for biofuels,” he said. “The return on investment is clear. Statewide adoption of E-15 and E-85 would slash carbon emissions, save families money at the pump and fuel Michigan’s economy for decades to come.”

Growth Energy also applauded Daley’s bill. “Demand for cleaner, more affordable fuel options has never been more critical, and this legislation would ensure that biofuel blends like E15 and E85 are available to more Michigan motorists,” said Emily Skor, CEO of Growth Energy. “Allowing more drivers to fill up on low-carbon biofuel blends, like E15, is crucial to helping our nation achieve our clean energy goals today. In fact, research shows that statewide E15 in Michigan could cut climate emissions by 580,000 metric tons, all while saving drivers five to 10 cents per gallon.

“We welcome Senator Daley’s leadership on homegrown energy, and we look forward to working with Michigan leaders to ensure that our farmers and rural producers remain at the forefront of the nation’s climate battle.”