Ohio House Passes Legislation Regarding Ethanol Tax Credit

COLUMBUS— The Ohio House of Representatives passed House Bill 324, legislation that creates a temporary non-refundable tax credit on sales of E15 and higher blended biofuels of 5 cents per gallon. The measure is spearheaded by State Representatives Riordan McClain (R-Upper Sandusky) and Roy Klopfenstein (R-Haviland).

The credit will be available to all businesses selling fuel containing at least 15% ethanol (E15). The tax credit will sunset when either $10 million is credited or four years have passed.

“E15 is not a new product, but since it entered the market, its availability has been suppressed,” said McClain. “It is our hope by offering this temporary tax credit, the availability of this Ohio-produced, cost-saving fuel will increase across the state.”

The Buckeye State is in the top 10 states of ethanol production, but most of the fuel produced in Ohio is exported to other states, as only 60 stations in Ohio offer the fuel compared to more than 2,300 stations nationwide.

“Ohio is home to seven ethanol plants, one of which is in my district where it provides great paying jobs for more than 40 people and produces 90 million gallons of bioethanol each year,” said Klopfenstein. “Ethanol is three to 10 cents cheaper per gallon than traditional fuel, and nine out 10 cars can use it.”

House Bill 324 passed with strong bipartisan support and moves to the Ohio Senate for further consideration.