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Under current law, diesel blends of over 10% biodiesel (B11) are
exempt from all sales taxes until Dec. 31, 2023.
The legislation, sponsored by Sen. Patrick Joyce, D-Essex,
extends the current B10 sales tax exemption until 2023 and then
increases the biodiesel blend level subject to the tax exemption
to B13 in 2024, B15 in 2025 and B20 in 2026.
It is cleaner for the environment, it's better for our 43,000
soybean farmers in Illinois and creates more demand for the
product, Joyce said.
Illinois ranks among the biggest producers of soybeans in the
country. U.S. Department of Agriculture data showed the state to
be the largest producer of soybeans in 2021, producing over 672
million bushels.
Illinois is currently fourth among all states in biodiesel
production and third in consumption with around 160 million
gallons consumed annually.
The new law will help keep more soybean oil in-state to be
processed at biodiesel refineries in Illinois rather than
shipped elsewhere to renewable diesel and aviation fuel
producing facilities.
Joyce said it is important to be self-sufficient when it comes
to energy sources.
It creates more U.S. grown fuel versus diesel fuel that could
be coming from anywhere in the world, Joyce said.
Earlier this month, the USDA announced funding in seven states,
including Illinois, to build infrastructure to expand the
availability of high-blend renewable fuels by approximately 60
million gallons per year. The investments are designed to give
consumers more affordable fuel choices at the pump.
Kevin Bessler reports on statewide issues in Illinois
for the Center Square. He has over 30 years of experience in radio
news reporting throughout the Midwest.
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