Indiana Passes Ethanol, Biodiesel Tax Credit
Indiana Governor Mitch Daniels signed SEA 353 into law on March 21. This bill increases the maximum amount of tax credits that can be granted for biodiesel production, biodiesel blending, and ethanol production from $20 million to $50 million. It also allows for a $0.10/gallon sales tax deduction for the retail sale of E85 until July 2008, or up to $2 million. The bill also extends the tax credits for the retail sale of blended biodiesel to 2010 and for integrated coal gasification power plants to invest in new technologies. This will move the state closer to its goal of producing one billion gallons of renewable fuel annually.
The Indiana State Department of Agriculture is working with automobile manufacturers to improve awareness and labeling of ethanol and biodiesel fuel stations, and encourages companies to include E85 stations in updates of global positioning navigation software.
Daniels said, "We've made dramatic progress in renewable fuels development over the past year and we will continue to be aggressive in our pursuit of additional agribusiness investment." For more information, see the governor's April 25 press release (PDF 341 KB).