MCGA Applauds House Passage of Legislation to Reduce Price at the Pump

LANSING, Mich. - Michigan drivers could see more lower-cost, higher-ethanol fuel options at the pump under legislation approved today by the Michigan House of Representatives.

House Bill 5359 would create a refundable state income tax credit for fuel retailers that sell E15 and E85, encouraging more stations to offer the Michigan-made fuels and helping offset retailers' costs of providing them.

The legislation, sponsored by State Rep. Matt Bierlein, provides retailers a credit of 5 cents for every gallon of E15 sold and 8.5 cents for every gallon of E85 sold through metered pumps. The credit would be available for tax years 2026 through 2030.

For Michigan corn farmers, the legislation also represents an opportunity to strengthen demand for a crop grown across much of the state.

"Michigan grows the corn, Michigan makes the ethanol, and Michigan drivers should benefit from it," said John Delmotte, a Monroe County corn grower and president of the Michigan Corn Growers Association (MCGA). "House Bill 5359 gives retailers a reason to offer drivers more choices at the pump while building a stronger market for a product we make right here at home."

Delmotte pointed to the direct line between higher ethanol blends and Michigan's corn economy. The state produces roughly 350 million bushels of corn per year, much of which feeds four ethanol plants located in Michigan that depend on strong E15 and E85 demand to stay competitive.

Michigan is home to four ethanol plants, creating a direct economic connection between the corn grown on Michigan farms and the fuel sold at Michigan gas stations.

Delmotte said the tax credit is particularly important because fuel retailers have largely shouldered the cost of installing and maintaining the infrastructure needed to sell higher ethanol blends.

"If we want drivers to have the option to choose E15 or E85, retailers have to be willing to put it at the pump," Delmotte said. "This credit helps make that investment worthwhile and encourages competition that can give families another way to save money when they fill up."

The economic impact, Delmotte said, extends well beyond the gas station.

"When a Michigan driver chooses a higher ethanol blend, those dollars travel back through the Michigan economy," Delmotte said. "They support the fuel retailer, the ethanol plant, the grain elevator and ultimately the farmer growing corn. That is what makes this bill so important. It connects affordability at the pump with jobs and economic activity in rural Michigan."

House Bill 5359 now heads to the Michigan Senate. MCGA is urging senators to take up the legislation and send it to the governor before the end of the year.

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About the Michigan Corn Growers Association

The Michigan Corn Growers Association is a grassroots organization of grower members dedicated to increasing the profitability of corn production. Founded in 1972, MCGA works on behalf of Michigan corn growers on policy matters in Lansing and Washington, D.C.