Reduced Biofuels Tax
A tax of $0.12 per gallon is imposed on gasoline containing at least 70% ethanol (E70) and diesel fuel containing at least 5% biodiesel (B5). This is a $0.07 discount compared to the conventional gasoline tax of $0.19 per gallon and a $0.03 discount compared to the conventional diesel tax of $0.15 per gallon. Ethanol is defined as denatured ethanol fuel that is suitable for use in a spark-ignition engine when mixed with gasoline and must meet ASTM D5798 specification. Biodiesel is defined as a fuel composed of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats and meets ASTM D6571 specification, as approved by the Michigan Department of Agriculture. Funding for this tax reduction is subject to appropriation. (Reference Michigan Compiled Laws 207.1008)