Michigan drops 7-cent/gallon E85 tax break

Among the biggest promoters of ethanol as a motor fuel are the three domestic automakers, all of whom are headquartered in Michigan. Between them they have sold more flex-fuel vehicles than any other companies. Unfortunately for them ethanol recently became more expensive for their home state drivers. A 7-cent a gallon tax break for E85 was allowed to expire without action from the state legislature. Unfortunately for Michigan, that lack of action is all too common here but that's another story. Over the past two years the number of E85 pumps in Michigan has grown from 2 to 56 in part due to increased demand. With the lapsing of this tax discount, drivers are less likely to use the biofuel and gas station owners are less likely to invest the $70,000 to install E85 pumps. Given Michigan's precarious financial situation, the legislature probably won't be in any hurry to restore the tax break.
[Source: DowagiacNews.com]