Illinois To Boost Production and Use

The Illinois Legislature has recently passed two bills to promote increased ethanol production and use. Senate Bill 1455 extends the state's sales tax credit for ethanol-blended fuels until July 1, 2003. Ethanol-blends, which account for half of all gasolines sold in the state, are only taxed at 70% compared with conventional fuels, with are taxed at 100%. Senate Bill 1840, the Alternative Fuels Act, provides $20 million to promote the use of alternative fuels, including ethanol. The money can be use to defray the incremental cost of purchasing an alternative fuel vehicle, the increased fuel cost, and for fuel infrastructure. Governor Jim Edgar is expected to sign both bills into law shortly.



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