LANSING, MI (AP)-- Legislation to cut state taxes for a specific method of oil and gas drilling is moving forward in Lansing.
The state House last week voted 85-25 to lower the severance tax for carbon dioxide-related projects. The technique involves using C02 to pull oil from the bottom of wells that otherwise is unrecoverable.
Supporters of the four-bill package say it would boost Michigan's economy and reduce the release of carbon dioxide into the atmosphere.
The bills go to the Senate after winning bipartisan support in the House. The Sierra Club's Michigan chapter says tax breaks shouldn't be given to the oil industry and warns expanded drilling will hurt the environment.
The legislation doesn't involve the controversial "fracking" drilling method.
Republican Rep. Aric Nesbitt of Lawton in sponsoring the tax cut bill.