Indiana Corn Farmers to Contribute to New Ethanol Incentive Program
In a ceremonial signing today, Governor Mitch Daniels highlighted a bill that revises the current corn marketing program to include a $500,000 ethanol program, funded by Indiana’s corn farmers.
Starting on July 1, 2009, the Indiana Corn Marketing Council (ICMC) – the state’s corn checkoff organization - will annually transfer funds into the Retail Merchant E85 Deduction Reimbursement Fund to ensure a balance of $500,000 to be used for the E85 sales tax deduction in the months of January, February and March each year. This program is part of House Bill 1398 which was passed earlier this year by the General Assembly and signed into law by Governor Daniels in May.
Currently 128 fuel retail locations have E85 pumps in Indiana. E85 is a renewable fuel made from corn that is a blend of 85 percent ethanol and 15 percent gasoline. It can be used in specially designed flex-fuel vehicles.
“These funds will encourage fuel retailers to offer E85 and consumers to use E85 in their flex-fuel vehicles,” said Mike Shuter, ICMC president and a Frankton, Ind. farmer. “The ethanol industry is a major market for our corn and this program allows us to use our corn checkoff funds to help grow demand for ethanol, which grows demand for corn.”
Shuter added, “We want corn farmers contributing our state corn checkoff to know that they are putting a sizable amount of their dollars into this new ethanol program and that we should be able to measure its effectiveness for moving ethanol into the market because of the timeline the tax deduction will be available to retailers.”
Representative Dale Grubb was the author of HB 1398, which included other ethanol incentive programs as well. Representatives Bill Friend, Joe Pearson and Dennie Oxley Sr. were co-authors. Senators Beverly Gard, Marlin Stutzman and Bob Deig were sponsors of the bill in the Senate.
Photo Cutline: Governor Mitch Daniels hosted a ceremonial signing for HB 1398 which included a new ethanol incentive program funded by Indiana corn farmers and their corn checkoff. Joining Governor Daniels were from left Senator Marlin Stutzman, Senator Beverly Gard, both sponsors of the bill in the Senate, and Representative Dale Grubb (far right), author of the bill. Also pictured are Lieutenant Governor Becky Skillman, Indiana State Department of Agriculture Director Anne Hazlett and representatives from the Indiana Corn Marketing Council, Indiana Farm Bureau, Indiana Petroleum Marketers and Convenience Store Association, and the ethanol industry.
The Indiana Corn Marketing Council was established by the Indiana General Assembly to promote the interest of corn growers in the state and manage corn checkoff funds. The Council is composed of 17 voting producer directors and 10 appointed farmer, industry, and government representatives.
Megan Kuhn, ICMC Communications Director
5730 W. 74th St.
Indianapolis, IN 46278
This communication was funded with corn checkoff dollars.