Bivins Bill Provides Sales Tax Relief On Gas, Promotes Alternative Fuels
From The Prairie-Advocate News (http://www.prairie-advocate-news.com/4-23-08/more4_23_08.html)
SPRINGFIELD - Providing Illinois motorists with some relief at the gas pump and promoting the development and use of alternative fuels like ethanol is the aim of legislation cosponsored by State Sen. Tim Bivins (R-Dixon).
Senate Bill 2570 requires the Department of Commerce and Economic Opportunity (DCEO) to establish and administer the Illinois Corn Grain to Fuel Research Consortium Assistance Program. The legislation also exempts a portion of state sales tax on gasoline when the pump price of motor fuel including gasoline, gasohol and diesel fuel exceeds $2.50 per gallon.
“A year ago, the average price for a gallon of unleaded gas was about $2.88, now it is more than $3.50. Consumers need some relief,” Bivins said. “What this legislation proposes is to exempt a portion of the state sales tax on gasoline when the price at the pump goes higher than $2.50 per gallon.”
The 45th District Senator says Senate Bill 2570 exempts the tax for that portion of the price that exceeds $2.50 per gallon. In other words, for gas selling at $3.50 per gallon, the full sales tax remains payable on $2.50, but the additional $1.00 per gallon is exempt from state sales tax.
Senate Bill 2570 requires the DCEO to develop and administer a grant program to support research and efforts on behalf of corn kernel to fuel alcohol, and cellulosic fuel alcohol production. The Department is to further solicit grant proposals from projects that provide for research in the laboratories of the Consortium’s members, for collaborations among Consortium members, or for members outside the Consortium conducting pilot testing of the National Corn-to-Ethanol Research Center.
In fiscal years 2010 through 2014, the program is be funded at $25 million, annually, with 70% of the grant funds being used for ethanol facilities and 30% being used for biodiesel facilities in fiscal years 2009 and 2010. In fiscal years 2011 and after, only $5 million per year is to be used for biodiesel facilities.
Passed by a unanimous vote of the Senate on April 8, Senate Bill 2570 is currently pending in the House of Representatives. The legislation is supported by the Illinois Farm Bureau and the Illinois Corn Growers Association.
