The Michigan Soybean Association is asking state lawmakers to support a biodiesel tax credit for producers.
Chief Executive Officer Ben Seyfer says the legislation would create a complete local supply chain while lifting farmers out of market uncertainty.
“Demand creation would help stabilize local soybean prices and promote the growth of energy security by utilizing homegrown and process renewable fuel that will reduce greenhouse gas emissions,” he says.
He says the credit is modeled after what’s being done in Missouri.
“There would be a 2-cent per gallon retail tax credit for blends of B6 to B9, a 5-cent per gallon incentive for B10 to B19 blends, and blends over 20 percent biodiesel would be a 7-cent per gallon tax incentive,” he explains.
Biodiesel producers would also receive a 2-cent per gallon credit. The legislation would cap incentives at $16 million for retailers and $2 million for producers over six years.
During this week’s Michigan House Committee on Agriculture, lawmakers questioned the impact on access to food and land use, and ways to support the state’s farmers.
A similar measure was introduced in 2023 but not moved out of the Tax Policy Committee.
Iowa, Minnesota, Missouri, Nebraska, and Illinois currently incentivize or mandate biodiesel usage, while Indiana, Kansas, Wisconsin, and Ohio legislatures are currently considering policies.
Originally shared by Brownfield.
Notice: The Michigan Advanced Biofuels Coalition (MiABC) does not lobby or influence policy in any way. The policy interests of Michigan soybean farmers and biodiesel producers are supported by the Michigan Soybean Association and Clean Fuels Alliance America, respectively.