Illinois OKs ethanol tax incentives

BLOOMINGTON, Ill. — The Illinois 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 ICGA, reduces the percentage of retail sales tax on E15 blends of gasoline by 10% and mid-range blends by 20% and reauthorizes the 100% reduction of sales tax for E-85. The tax incentives will sunset on Dec. 31, 2028.

“The Illinois Corn Growers Association applauds Governor Pritzker and the state legislature for their continued support of Illinois agriculture,” said Matt Rush, a Fairfield area farmer and ICGA president.

“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 state Sen. 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,” Joyce said. “This new tax structure will not only help farmers, but it is also better for our environment.”

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, Gov. J.B. Pritzker has been a national leader supporting the year-round sale of 15% 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 ICGA stated.