Providing an income tax credit for the sale and distribution of ethanol blends for motor vehicle fuels.
Impact
If enacted, HB 2763 would have significant implications for state laws related to energy and taxation. It is expected to provide an economic boost to ethanol producers and sellers, as the tax credit might incentivize businesses to increase their sales and distribution of ethanol blends. This could also lead to a greater adoption of renewable fuels among consumers, aligning with broader state and national goals of enhancing energy security and reducing greenhouse gas emissions.
Summary
House Bill 2763 proposes the establishment of an income tax credit aimed at promoting the sale and distribution of ethanol blends for motor vehicle fuels. The bill seeks to encourage both consumers and sellers to transition towards greener fuel options, contributing to environmental sustainability and potentially reducing reliance on fossil fuels. By providing financial incentives through tax credits, the legislation is designed to stimulate economic activity within the renewable energy sector and support local producers of ethanol.
Contention
Legislative discussions around HB 2763 may reveal points of contention, particularly regarding the financial implications of providing tax credits. Supporters of the bill argue that the incentives are necessary for fostering a market for ethanol, which complements existing efforts towards renewable energy adoption. Conversely, opponents may express concerns about the potential revenue loss for the state due to the implementation of these tax credits, questioning whether the environmental benefits justify such an expenditure. These debates are crucial in determining the future of the bill and its reception among various lawmakers.
Substitute for HB 2012 by Committee on Agriculture and Natural Resources - Establishing the ethanol grant program fund and transferring an amount of not to exceed $5,000,000 from the state general fund to the ethanol grant program fund each July 1 beginning in 2026.