Industry expects minimal impact from end of E-10 tax credit

Sales tax subsidy sunset July 1 after being negotiated out of state budget.

A state tax credit for gasoline containing 10 percent ethanol sunset on July 1.
A state tax credit for gasoline containing 10 percent ethanol sunset on July 1.
By Jim Taylor

Although the corn industry would like to see it continue, the Illinois sales tax credit for gasoline containing 10 percent ethanol, or E-10, served its purpose in Illinois, according to representatives of the Illinois Corn Growers Association (ICGA).

Sunsetting July 1, the E-10 sales tax credit was a casualty in the new state budget.

The impact at the pump should be minimal, although some critics claim there will be a 10- to 11-cent increase in the per-gallon price consumers pay for gas.

ICGA’s Tricia Braid said those numbers are false.

“So there’s a 20 percent sales tax credit,” she said. “If we assume that that sales tax credit was being accrued to the motorist, which I don’t believe that’s the case, even if it were, with $2.30 gas, we’re talking about 2 cents.”

Braid said the tax credit has positive results. Of all gasoline sold in Illinois, 95 percent is E-10.

The state anticipates the move will generate between $95 million and $100 million.

Content for this story was provided by FarmWeekNow.com.

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