Jul 24, 2014
Home| Tools| Events| Blogs| Discussions Sign UpLogin

Corn, Ethanol Groups Welcome Bill Transforming Current Ethanol Tax Policy

May 4, 2011

Related Stories

 
 

Legislation would reduce the current blender’s credit, also known as VEETC, for a two-year period before transitioning to a tax credit that would adjust based on the price of oil.

Source: National Corn Growers Association news release

Washington (May 4, 2011)  – The National Corn Growers Association (NCGA), the American Coalition for Ethanol (ACE), Growth Energy  and the Renewable Fuels Association (RFA) today praised the legislation offered by a bipartisan group of senators, led by Iowa Senator Chuck Grassley, to responsibly transition and transform current ethanol tax policy. 

This legislation would reduce the current blender’s credit, also known as VEETC, for a two-year period before transitioning to a tax credit that would adjust based on the price of oil. Importantly, this legislation would also improve upon current tax credits for the installation of blender pumps and ethanol fueling infrastructure. Additionally, the bill would extend tax credits for small ethanol producers as well as for advanced and cellulosic ethanol.

Original cosponsors of the Domestic Energy Promotion Act of 2011 include: Senator Kent Conrad (D-ND), Senator Mike Johanns (R-NE), Senator Amy Klobuchar (D-MN), Senator Al Franken (D-MN), Senator Tim Johnson (D-SD), Senator Tom Harkin (D-IA), and Senator Ben Nelson (D-NE).

The groups issued the following statement:

“The leadership of Senator Grassley and this distinguished bipartisan group of cosponsors has been and remains instrumental in allowing America’s ethanol industry to grow and evolve. At a time of near-record gas prices and continued volatility in world oil markets, America’s growing production and reliance of domestic ethanol sources is creating jobs, keeping gasoline prices down, and reducing this nation’s appetite for imported oil. Domestic Energy Promotion Act of 2011 would ensure we don’t abandon this increasingly vital American industry, but rather smartly and responsibly foster its continued growth and evolution.

“This legislation rightfully recognizes budget constraints by reforming the ethanol tax credit and significantly reducing its cost. Additionally, this bill would improve current tax credits for the installation of blender pumps offering higher level ethanol blends and provide Americans more choice when they fill up. Critically, this legislation would also ensure progress made to commercialize advanced ethanol technologies utilizing new feedstocks such as grasses and municipal solid waste is accelerated. We thank these senators for their leadership in introducing this bill and look forward to working with them through the legislative process that ultimately ends with the President’s signature.”

According to a recent report from Iowa State University, the University of Wisconsin, and the Center for Agriculture and Rural Development, the growth in production and use of ethanol kept American gas prices $0.89 lower than it otherwise would have been in 2010. Such downward pressure on the gasoline market saved the average American family more than $800 last year alone. From 2000-2010, ethanol kept gasoline prices $0.25 cents lower on average than they otherwise would have been, resulting in nearly $35 billion in avoided cost at the pump for consumers.

See Comments

RELATED TOPICS: Dairy, Farm Business, Policy, Livestock

 
Log In or Sign Up to comment

COMMENTS (1 Comments)


For those of you trying to balance the budget by eliminating one of the only remaining source of jobs in the Midwest (Ethanol and related technologies), please check out the Tariff Act of 1913.

Tell me why with record profits for oil companies we still have to give them subsidies and tax credits to survive ?

Isn't nearly 100 years of tax credits enough ????

http://blog.maxdunn.com/articles/2010/07/06/oil-company-tax-breaks


12:48 PM Jun 16th
 



Name:

Comments:

Receive the latest news, information and commentary customized for you. Sign up to receive the AgWeb Daily eNewsletter today!.

 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions