Wednesday, January 14, 2009

News

Bill promises biomass break for farmers

By NATHAN BRUTTELL Argus-Press Staff Writer

Wednesday, January 14, 2009 10:00 AM EST

As the nation faces a recession, local and state officials have passed a bill to ease the burden on the agricultural world and the environment.

A bill signed New Year's Eve allows Michigan farmers who purchase machinery that can harvest biomass material to receive a key sales tax exemption under a new law authored by State Rep. Dick Ball, R-Owosso, according to a press release.

The bill, which is part of a statewide energy project, provides a tax exemption on machinery such as combines that can harvest grain and other crops, while collecting the biomass residue used to produce alternative energy.

“Our motivation is two-fold,” Ball said. “We know that we need to try to find renewable energy sources so that we're not using up fossil fuels...to reduce our dependence on foreign oil. It also creates a very good way of getting value from biomass waste.”

Ball said the bill is only a step on the ladder to cleaner energy and new jobs headed to the state.

“Michigan has quickly positioned itself as a leader in bio-energy and this new law will further strengthen our state's hand in the creation of green-collar jobs,” he said.

Bennington Township farmer Leonard Ash said while he hadn't heard of the bill, he was happy to hear of the tax break.

“Anything I can do to conserve energy or help any farm-related product is something I will do,” Ash said. “We have equipment now that burns soy diesel...which is made with soybean oil when we start out in the spring with the harvest.”

Ball said farmers already receive sales tax exemption for farm equipment, but the bill will apply that break to all biomass equipment as well.

“Up until the last couple of years a lot of energy-efficient machines still had tax,” Ball said. “(Biomass equipment) was not specifically included in the older tax exemption before the bill was passed.”

- Contact Nathan Bruttell at 725-5136 extension 231 or nbruttellarguspress@gmail.com.