Ag, Trucking Industries Say Pritzker’s Proposed Tax on Biofuel Will Hurt Farmers, Consumers

Illinois, Marketing/Markets and Sales, Opinions, Policy

February 22, 2021

Print This Article Share it With Friends

(The Center Square/WMAY) Some are taking issue with Governor J.B. Pritzker’s Fiscal Year 2022 budget proposal which would bring an end to the sales tax exemption for biodiesel fuel in Illinois.

Pritzker said accelerating the expiration of the sales tax exemption for biodiesel will increase the state general funds revenues by an estimated $107 million dollars.

The Illinois Soybean Growers Association is not happy about it. Chairman Doug Schroeder said Illinois uses 180 million gallons of biodiesel each year which generates $600 million to Illinois family farms annually.

“To get the tax credit, you have to have 11% bio in the mix or more, and if that tax credit goes away, it will be a little cheaper to run straight diesel, so that is going to be a problem,” said Schroeder.

The ISG is also speaking out in support of HB299, a bill introduced in the Illinois legislature in January that aims to create a state renewable fuels standard. The legislation would require a B5 blend from July 1, 2021 through July 1, 2024 when the requirement would increase to B20. READ MORE

Comments are closed.

Advanced BioFuels USA