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.