Ohio House approves bill to create tax credit for E15, E85 sales

By Erin Voegele | November 18, 2021

The Ohio House of Representatives on Nov. 17 voted 89 to zero in favor of a bill that aims to offer qualifying fuel retailers a 5-cent-per-gallon tax credit for sales of fuel containing between 15 and 85 percent ethanol.

The bill, H.B. 165, would cap the total tax credit amount at $10 million and make the credit available for four years after the bill is signed into law.

The legislation was introduced by Ohio Rep. Riordan T. McClain in March. The bill reported out of the House Ways and Means Committee in June. To date, 35 Ohio lawmakers have signed on cosponsor the legislation. In a statement introducing the bill, McClain said the tax credit aims to help cover the costs associated with converting or installing pumps approved by the U.S. EPA to administer E15.

The Ohio Ways and Means Committee addressed the bill during several hearings this year. The Ohio Corn and Wheat Growers Association, Ohio Ethanol Producers Association, American Freedom Energy, Sheetz, Ohio State Grange, Ohio Soybean Association, Growth Energy, POET LLC, United Dairy Farmers, and Guardian Energy were among the groups offering testimony in favor of the tax credit.

Growth Energy issued a statement applauding passage of the bill. “This important bill will give more drivers a chance to take advantage of homegrown, plant-based fuel options that unlock savings at the pump while reducing emissions,” Emily Skor, CEO of Growth Energy. “Ohio ethanol producers and farmers are playing a critical role in decarbonizing the transportation sector, and we applaud Representative McClain and his colleagues for taking action to make higher blends more readily available. Sold statewide, E15 could boost Ohio’s economy by $650 million and slash greenhouse emissions by 746,000 metric tons – equal to removing 163,000 vehicles from Ohio roads. This is the kind of progress we need to help family farmers, boost our rural economies, and meet our climate goals. We urge leaders in the Ohio Senate to move quickly and send H.B. 165 to the governor’s desk.”

Additional information is available on the Ohio Legislature website