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Illinois soybean farmers received a boost after a new law hit the books that will incentivize increasing blends of biodiesel.
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,” said Joyce.
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,” said Joyce.
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.
***Report Courtesy of the Illinois Radio Network***