Indiana corn/soybean producers gearing up to get biofuels tax credit across the finish line next year
Indiana corn and soybean producers aim to pass a biofuels tax credit bill, partnering with Andretti IndyCar to promote biofuel initiatives. The bill could inject $200 million yearly into the state’s economy, lowering fuel costs and supporting ethanol plants. Despite past challenges, producers remain optimistic about the bill’s potential impact on jobs and fuel prices, gearing up for discussions in the upcoming legislative session.
INDIANAPOLIS —With another running of the Indianapolis 500 in the books, Indiana corn and soybean producers are gearing up to get what they call a crucial bill across the finish line.
When many Hoosiers think of all the excitement of Andretti IndyCar, soybean/corn production usually doesn’t come to mind. But as it turns out, the team is partnering with the Indiana Soybean Alliance and the Indiana Corn Growers Association to drive forward a number of biofuel initiatives.
One initiative the groups hope could become a reality within the next year is a biofuels tax credit bill.
”It’s an effort to incentivize the sales of biofuel blended fuel,” Steve Howell with the ISA/ICGA said.
According to Howell, the tax incentive could pump approximately $200 million in the state’s economy each year if signed into law.
“We’ve got 15 ethanol plants and we also have the largest integrated biofuels processing plant here in Indiana,” Howell said.
But, Howell pointed out jobs weren’t the only things a biofuels tax credit can provide.
”It would lower the cost of fuel at the pump…If we can move to 15% blend of ethanol, typically we see a 5-10 cent reduction in the cost of fuel for a consumer,” Howell said.
Howell said a similar bill introduced last session had near unanimous support among corn/soybean producers, but didn’t make it very far past the starting line at the Indiana Statehouse.
“Well, last session was a short session, so they did not consider budget items…the real benefit of offering that legislation was to build the awareness of the benefits of the biofuels industry and to come back stronger,” Howell said.
It’s unclear if lawmakers will convene to discuss the tax credit before next session begins. The green flag on the interim study session is expected to wave within the next few months.
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