2008 House Bill 5878: Authorize tax credits for ethanol gas stations

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Public Act 335 of 2008

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Introduced by Rep. Joel Sheltrown (D) on March 11, 2008, to authorize a refundable Michigan Business Tax credit equal to 30 percent of the costs incurred by a gas station to convert existing pumps and tanks, or acquire new ones that deliver E85 ethanol or biodiesel fuel. “Refundable” means the state would write checks to station owners whose credit against the amount spent on this equipment is more than what they owe in taxes.
- Referred to the House Agriculture Committee on March 11, 2008.
  - Reported in the House on December 2, 2008, with the recommendation that the substitute (H-2) be adopted and that the bill then pass.
  - Substitute offered in the House on December 3, 2008, to replace the previous version of the bill with one that makes the tax credit non-refundable. The substitute passed by voice vote in the House on December 3, 2008.
  - Amendment offered by Rep. Joel Sheltrown (D) on December 3, 2008, to revise which government aqency will have authority over certifying eligibility for the subsidies. The amendment passed by voice vote in the House on December 3, 2008.
Passed 108 to 1 in the House on December 3, 2008, to authorize a nonrefundable Michigan Business Tax credit equal to 30 percent of the costs incurred by a gas station to convert existing pumps and tanks, or acquire new ones that deliver E85 ethanol or biodiesel fuel, up to $20,000 per taxpayer per year. A total of no more than $1 million in credits would be allowed per calendar year.
Who Voted "Yes" and Who Voted "No"
Received in the Senate on December 4, 2008.
Passed 35 to 3 in the Senate on December 10, 2008, to authorize a nonrefundable Michigan Business Tax credit equal to 30 percent of the costs incurred by a gas station to convert existing pumps and tanks, or acquire new ones that deliver E85 ethanol or biodiesel fuel, up to $20,000 per taxpayer per year. A total of no more than $1 million in credits would be allowed per calendar year.
Who Voted "Yes" and Who Voted "No"
Signed by Gov. Jennifer Granholm on December 23, 2008.

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1) Re: 2008 House Bill 5878 (Authorize cash subsidies to ethanol gas stations ) by crazycajun on January 12, 2009

this bill is wrong on so many levels.

1. turning food into fuel is STUPID when the ethanol we can make from GARBAGE is just as good.

2. why are we subsidizing this? can't this leftist utopian idea float on it's own merit? obviously not.

3. why is the government even getting involved in the business of making fuel? it has no place there, no expertise, and no business being involved in the first place.

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2) Re: 2008 House Bill 5878 (Authorize cash subsidies to ethanol gas stations ) by BeautifulDayforFootball on December 20, 2008

The bill is now on its way to the governor, having been overwhelmingly approved by all but four lawmakers (3 in senate, 1 in house.)

More discussions of past ethanol votes from Michigan Capitol Confidential here and here.

Is this a wise energy policy?

Is using tax incentives to encourage turning food into fuel such a decidedly great idea that almost the entire legislature should be marching behind it?

Who benefits from this?

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3) Re: 2008 House Bill 5878 (Authorize cash subsidies to ethanol gas stations ) by Admin003 on December 14, 2008

Senator Switalski asked and was granted unanimous consent to make a statement and moved that the statement be printed in the Journal.

The motion prevailed.

Senator Switalski’s statement is as follows:

I voted “no” against this bill when it was before us earlier in another version, and it was 37-1, so it just slipped through. I raised some objections at the time that it was retroactive, so that people who had already installed these pumps would be getting a tax credit for doing something that they had already done. It was about $3 million a year, and ethanol was already 22 cents less than gasoline at the station, so there was already incentive to do it.

I have to say that some significant changes have been made to the bill, such as there is no retroactivity now; there is a three-year phase-out; there is a $20,000 cap per year per taxpayer; and there is also a $1 million cap per year for all the credits. I now enthusiastically support this bill.

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