SB1565 Summary

• Increases use tax on gasohol from 80% to 90% of sales proceeds for transactions between July 1, 2017 and December 31, 2018, then returns to 100% thereafter.

• Imposes 80% use tax on mid-range ethanol blends (20-51% ethanol content) from July 1, 2017 through December 31, 2018, then 100% thereafter.

• Amends the Illinois Renewable Fuels Development Program to establish three grant programs: next generation renewable fuels ($2 million FY2018, $1 million FY2019), majority blended ethanol and blender pump infrastructure ($2 million FY2018, $1 million FY2019), and sustainable corn production and corn-based renewable fuel research ($2 million FY2018, $1 million FY2019).

• Updates gasohol definition to require maximum EPA-authorized ethanol proportion under Clean Air Act Section 211 and redefines majority blended ethanol fuel as 51-83% ethanol by volume per ASTM Standard DS798-11.

• Applies identical tax treatment to gasohol and mid-range ethanol blends across Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act.