LANSING – State Representative Barb Byrum (D-Onondaga) today announced that the House has approved legislation to allow crop-based fuels such as ethanol and biodiesel to be eligible for inclusion in the tax-free zones established for renewable energy facilities in the state.
"Michigan is already well-positioned to be a leader in renewable energy production," Byrum said. "This legislation will give our farmers in Ingham County a key economic development tool. Allowing facilities that produce fuels such as ethanol and biodiesel to be eligible for tax abatements will spur local investment in renewable energy, and will help to wean Michigan off foreign oil."
House Bill 5100 allows facilities that use whole agricultural crops such as corn to qualify as renewable energy facilities under the state's landmark Renaissance Zone Act tax abatements. Currently, only facilities that produce energy from "crop residue," such as corn husks, are eligible. As a result, Michigan has yet to designate a single renewable energy facility zone.
"Whole crops, such as corn, are vital to our state's economy," Byrum said. "But until now, renewable energy facility zones have only included producers that rely on crop residue. This bill will fix that technicality and help our farmers put Ingham County on the path to energy independence."