LANSING – State Representative Kate Ebli (D-Monroe) today announced that the House passed a plan that will give tax breaks to facilities making whole-crop fuels such as ethanol and biodiesel, which will spur job-creation in Michigan's renewable energy industry.
"With this plan allowing facilities that produce fuels such as ethanol and biodiesel to be eligible for tax abatements, our state gains access to another key economic development tool, helping to boost our economy and attract good-paying jobs in emerging industries to Michigan," Ebli said. "Revising the law that defines what counts as a renewable energy facility will help spur local investment in renewable energy, and that, in turn, will provide a much needed boost to our state's economy."
The plan allows facilities that use whole agricultural crops such as corn to qualify as renewable energy facilities under the state's landmark Renaissance Zone Act tax abatements. Currently, only facilities that produce energy from "crop residue," such as corn husks, are eligible. As a result, Michigan has yet to designate a single renewable energy facility zone.
"Renewable energy facility zones were originally designed to create alternatives to agricultural processing zones," Ebli said. "But until now, only producers that rely on crop residue – as opposed to whole crops, such as corn – have been included in renewable energy facility zones. One of my priorities as a State Representative is to advance job-creation plans to put Michigan's economy back on the road to recovery, and this change will help do that. Michigan is already poised to be a leader in the emerging renewable energy production industry, and it's important that we fix this glitch in the legislation to expand the types of producers eligible for these tax-free zones."