Find Court Cases > New Energy Company of Indiana v. Limbach

New Energy Company of Indiana v. Limbach

Case Date: 03/29/1988
Docket No: none

Facts of the Case 

An Indiana law gave a tax credit against the Ohio motor vehicle fuel sales tax for each gallon of ethanol sold by fuel dealers, provided that the ethanol was produced in Ohio or in a state that grants similar tax advantages as the Ohio scheme.

Question 

Did the law discriminate against interstate commerce and violate the Commerce Clause?

Argument New Energy Company of Indiana v. Limbach - Oral ArgumentFull Transcript Text  Download MP3 Conclusion  Decision: 9 votes for New Energy Company of Indiana, 0 vote(s) against Legal provision: Article 1, Section 8, Paragraph 3: Interstate Commerce Clause

Yes. The unanimous Court held that the law's primary purpose was to confer favorable tax treatment on Ohio-produced ethanol which imposed "an economic disadvantage upon out-of-state sellers." Ohio was unable to advance a legitimate local purpose for the law