On July 7, 2006, Michigan Governor Jennifer Granholm signed into law legislation creating incentives for the production, distribution, and purchase of alternative fuels. The seven-bill package lowers the state tax on each gallon of ethanol-blended fuel from 19 cents to 12 cents and on biodiesel fuels from 15 cents per gallon to 12. The legislation also allows for the creation of new agriculture renaissance zones (i.e. regions of the state set aside as virtually tax-free) for companies producing ethanol and biodiesel and it provides grants to renovate or expand existing service stations to make E-85 and biodiesel available.
Map of States with Mandates and Incentives Promoting Biofuels