Illinois has introduced new tax incentives aimed at stimulating the sale of gasoline blended with higher proportions of ethanol. The governor signed Senate Bill 1963, granting gas stations a 10% sales tax exemption for the sale of ethanol-blended gasoline. The primary goal of this measure is to drive the adoption of gasoline containing a 15% ethanol blend, known as E15, in the state.
The Illinois Corn Growers Association's Public Policy Manager, Russ Orrill, emphasized the desire to replicate the success seen in Iowa, where E15 blends are widely available. Currently, many motorists in Illinois opt for gasoline with a 10% ethanol blend. The Environmental Protection Agency (EPA) recently granted a waiver allowing the sale of E15 blends during the summer season, and it is expected to permit year-round sales of E15 gasoline in Illinois and other Midwest states starting in 2024.
The sales tax incentives provided are voluntary and aim to create market demand for E15 blended fuel. Orrill highlighted the advantages of ethanol as a renewable and sustainable commodity, noting its ability to reduce the carbon intensity of gasoline and lower CO2 emissions by 40 to 50%.
The newly enacted legislation includes a 10% sales tax exemption for the widely compatible E15 blend. Additionally, there is a 20% sales tax exemption for fuel with a 20% to 50% ethanol blend and a 100% tax exemption for vehicles capable of running on an 85% ethanol blend.
State Senator Pat Joyce introduced the legislation, receiving support from Senator Celina Villanueva. The tax incentives were incorporated into a comprehensive tax omnibus bill, passing with significant support in both the Illinois House and Senate. While the sales tax exemptions are set to expire in 2028, the original proposal sought an extension until 2030.
Source : wisconsinagconnection