LANSING – State Representative Kate Ebli (D-Monroe) today voted to pass a plan that will encourage the use and production of renewable fuels in Michigan by providing a tax credit to gas station owners who upgrade or purchase new pumps and tanks that provide ethanol or biodiesel fuel.
"Michigan is in a prime position to become a leader in renewable energy production," Ebli said. "With agriculture as our second largest industry, farmers across the state stand to benefit greatly from encouraging the use and production of renewable fuels. By making it easier for gas station owners to provide renewable fuels at their stations, we can take advantage of this emerging industry to create jobs while simultaneously reducing our dependence on foreign oil."
The plan will create a Michigan Business Tax credit beginning in 2009 for service station owners who install new renewable fuel delivery systems. The credits would be available over the next three years, and would be limited to $1 million overall and $20,000 per taxpayer.
Any gas station that stops providing renewable fuels within three years of claiming the credit could have the credit reduced, eliminated or have a percentage of the credit added back to their tax liability.
As part of the House Democrats' aggressive plan to create good-paying jobs by establishing Michigan as a 21st century powerhouse of renewable energy production, the House today also passed a plan that will create an Alternative Fuels Fund, which will award grants to improve the production of renewable fuels in Michigan. The plan also creates an income tax check off option that will help finance the fund.
"We've seen gas prices flutter and reach unthinkable heights this year, which has put large dents in the pocketbooks of our working families," Ebli said. "Relying on foreign oil and fluctuating prices in an unstable market has become far too costly for our residents. Encouraging the production of renewable fuels will help keep our fuel prices low, help our farmers succeed and create jobs for our workers in this growing field."