Michigan House Passes Measure Offering Ethanol, Biodiesel Tax Breaks

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he Michigan House approved a bill last week that would provide motorists a tax break for purchasing fuel with higher ethanol and biodiesel content, the Associated Press reported.

Under the bill, which must still be approved by the Senate, the tax would be 12 cents a gallon on those fuels, compared with the current 19 cents for regular gasoline and 15 cents for regular diesel fuel.

Ethanol is a clean-burning fuel made primarily from corn. Biodiesel is a clean fuel made from renewable sources such as soybean oil.

A second bill passed by the House would provide gas stations grants to cover part of the costs of adding ethanol or biodiesel pumps, AP said.