May 30, 2023
BY Erin Krueger
The Illinois legislature in May passed legislation that aims to boost the state’s corn industry by increasing the level of ethanol that must be blended into transportation fuel in order to be eligible for a fuel sales tax exemption. The bill will now be considered by Illinois Gov. J.B. Pritzker.
The legislation, SB 1963, was passed by the Illinois House on May 19 by a vote of 79 to 25. The Illinois Senate approved the amended legislation on May 24 by a vote of 53 to 1.
Illinois Sen. Patrick Joyce, D-Essex, secured ethanol provisions of the bill. “When the demand for ethanol based fuel goes up, we see the demand for Illinois corn rise as well,” he said. “This new tax structure will not only help farmers, but it’s also better for our environment.”
According to Joyce, the tax exemption provides that the sales tax applies to only 90 percent of the proceeds of sales of gasohol, 80 percent of the proceeds of sales of mid-range ethanol plants, and none of the proceeds of sales of majority blended ethanol fuel. The new tax structure is designed to incentivize the production and sales of E15-E85 blends.
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“This is just a win-win situation for our state,” said Joyce. “It helps farmers by increasing corn demand and supports our environment by incentivizing the usage of cleaner-burning fuels.”
A full copy of the bill is available on the Illinois General Assembly website.
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