LANSING, Mich. --- Michigan state senators this week voted to lower the state tax on ethanol-blended fuel from 19 cents to 12 cents a gallon. The bill also requires that the biodiesel fuel tax drop from 15 cents to 12 cents a gallon. According to Associated Press reports, legislators will need to earmark $2.5 million to pay for the tax cut. The bill's goal is to promote production and use of alternative fuels.

Originally posted on Fleet Financials