LANSING – State Representative Terry Brown (D-Pigeon) today announced that the House passed a plan that gives tax breaks to facilities that make biodiesel and ethanol from whole crops such as corn, which will spur job-creation in Michigan's renewable energy industry.
"Providing tax abatements for the most common type of ethanol and biodiesel plants will help attract more of these companies and cement the Thumb's position as Michigan's center of renewable energy production," Brown said. "Updating the law to define what counts as a renewable energy facility makes good economic sense. The more we can do to build up local investment in this emerging industry, the more good-paying jobs we can create for our workers."
The plan, which the House passed Wednesday, allows facilities that use whole agricultural crops such as corn to qualify as renewable energy facilities under the state's landmark Renaissance Zone Act. Currently, this outdated law allows only facilities that produce energy from "crop residue," such as corn husks, to be eligible. As a result, Michigan has yet to designate a single renewable energy facility zone.
"Advancing the Thumb's agricultural economy is essential to making sure that our farmers and working families thrive in the new global economy," Brown said. "We need to keep building on our economic momentum here in the Thumb, and tax-free zones are an effective way to make our area an attractive, competitive site for new employers and investors."