Michigan governor considers biodiesel tax break

| 7/7/2006

Michigan Gov. Jennifer Granholm is considering legislation that would lower the state tax on biodiesel from 15 cents per gallon to 12 cents.

If the governor signs the bill, The Associated Press reported that it would also drop the tax on ethanol from 19 cents to 7 cents. About $2.5 million would be set aside to cover the tax cut for up to 10 years.

The AP reported that the bill has drawn controversy in the state because some legislators say the tax money is needed to pay for the state’s transportation infrastructure, including upgrades and repairs on roads, bridges and other needs.

Some legislators have even been pushing for a fuel tax increase, a move that has become unpopular with voters as fuel prices continue to rise.