Indianapolis, Indiana [RenewableEnergyAccess.com] Companies now have greater incentive to produce renewable fuels in Indiana due to tax credits for ethanol and biodiesel production extended through the Biofuels Use and Production Credits Bill (Senate Enrolled Act 353). This will move the state closer to its goal of producing one billion gallons of renewable fuel annually.“We’ve made dramatic progress in renewable fuels development over the past year and we will continue to be aggressive in our pursuit of additional agribusiness investment,” said Indiana Governor Mitch Daniels, who participated in a ceremonial signing of the bill yesterday. SEA 353 increases the maximum amount of tax credits that can be granted for biodiesel production, biodiesel blending, and ethanol production from $20 million to $50 million. It also allows for a $0.10/gallon sales-tax deduction for the retail sale of E85, until July 1, 2008, or up to $2 million. E85 is a performance motor fuel comprised of 85 percent ethanol and 15 percent gasoline. In addition, the bill extends the tax credit for the retail sale of blended biodiesel to 2010. A final provision extends the tax credit for integrated coal gasification power plants to invest in new technologies. The Indiana State Department of Agriculture is working with automobile manufacturers to improve awareness and labeling of ethanol and biodiesel fuel stations, as well as encouraging companies to include E85 stations in updates of global positioning navigation software. There are more than 25 public E85 pumps and more than 50 biodiesel pumps in Indiana with a goal of 40 public E85 pumps available to Hoosiers across the state by the end of 2006. “From day one, we have been serious about turning Indiana into a national leader in the production, development and use of biofuels,” said Lt. Governor Skillman, who also serves as Secretary of Agriculture and Rural Development. “This legislation is proof of that commitment. It is important, if we plan to continue on this growth track, that we provide tax incentives to promote the production and use of renewable fuels.” SEA 353 was signed into law by Governor Daniels on March 21. The bill was authored by Senator Tom Weatherwax, R-Logansport, and sponsored by Representative Eric Gutwein, R-Rensselear.