The debate over ethanol tax breaks in Illinois turned to old tractors, motorcycles, boats and lawnmowers at a state Senate committee hearing on Thursday.

 

At issue is a proposal to eliminate a 20 percent per-gallon sales tax break on sales of E10 fuels and create a 10 percent break for E15, which currently gets no tax incentives. Agricultural groups also are asking for legislative authorization to accept a nearly $12 million federal alternative-fuels grant that would go toward the cost of tanks, pumps, fuel lines and nozzles required to sell E15.

 

"This is very timely for corn farmers in Illinois. Agricultural economists are now predicting low (corn) prices are here for the next four to five years," Illinois Corn Growers Association president Jeff Jarboe said during Thursday's hearing of the Illinois Senate Agriculture Committee.

 

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