LANSING, Mich. -- Gas stations could get tax incentives to provide fuels with higher ethanol and biodiesel content under legislation passed by the Michigan House, the Associated Press reported.
The bills are an attempt to reduce dependence on imported oil and to develop new markets for some Michigan agricultural products used to help make the renewable fuels. Some supporters say the legislation also could help the state's auto industry by encouraging the development of vehicles that run on alternative fuels. Motorists could get some of the incentives [image-nocss] passed down to them.
Michigan is simply at the bottom of too many lists, and this is Michigan's chance to lead the rest of the nation in renewable fuels and become competitive with our Midwest neighbors as we provide the incentives needed to increase production in this great state, said Speaker Craig DeRoche (R), according to a report by WOOD-TV.
Those incentives include:
Providing tax incentives for renewable fuels. Giving gas stations the opportunity to receive a grant of up to 50% of the total cost for converting an existing gas station to be E85 (85% ethanol , 15% unleaded gasoline) or B5 (5% biodiesel, 95% diesel) fuel efficient. Offer a grant for 50% of the total cost for the construction of a new E85 pump, which could be up to $15,000 per facility, providing more business and economic development for Michigan retailers. Require state flex-fuel vehicles to use the fuels they were designed for. Create 10 new renaissance zones in Michigan to be used specifically for manufacturing alternative energy to increase the supply of E85 for Michigan business and industry. Require the state Department of Agriculture to test diesel fuels to ensure Michigan residents are receiving the best quality fuels.The legislation goes to the Senate for its consideration.
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