Illinois Bill Would Boost Ethanol Producers

Convenience Store News
Mar 21, 2012

SPRINGFIELD, Ill. -- Illinois biofuel companies who have faced a market glut since the end of a federal tax credit led energy companies to rush pre-expiration production may have hope in the form of a newly proposed bill that would create new tax credits. House Bill 4700, currently awaiting debate in the House Rules Committee, would encourage Illinois gas stations to install more flex-fuel pumps, according to an Illinois Statehouse News report.

Referred to as the Consumer Fuel Choice Act, the bill "sends a message to consumers," said co-sponsor Rep. Donald Moffitt (R-Galesburg). "If you buy a flex-fuel car, there’ll be fuel available. And it supports our rural industry," stated Moffitt. "Profits from ethanol stay in our country."

If passed, the bill would create a new 10-percent sales tax credit for E20 gasoline, which contains 20 percent ethanol. It would also provide $20 million in annual grants, with ethanol companies receiving $15 million for research and gas stations receiving $5 million to install more flex-fuel pumps. It would also provide some profit to the state by ending a 20-year-old 20-percent tax credit for E10 fuel. This would result in $150 million per year added to Illinois' general fund, said Senate co-sponsor Sen. John Sullivan (D-Rushville).

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