Grassley and Conrad Introduce Ethanol Tax Proposal
Bipartisan proposal updates ethanol tax policy, generates new jobs.
Compiled by staff
Published: May 5, 2011
The American Coalition for Ethanol, Growth Energy, the National Corn Growers Association, and the Renewable Fuels Association are all in support of legislation offered by a bipartisan group of senators, led by Senators Chuck Grassley, R-Iowa, and Kent Conrad, D-N.D., to responsibly transition and transform current ethanol tax policy. The groups have issued a statement saying the 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.
"Our nation isspending more than $850 million every day on imported energy," Conrad said. "Imagine what it would be like if we spent that money on energy from the Midwest instead of the Middle East. We need to do more to boost domestic energy production, especially from alternative fuels such as ethanol."
The proposal would reduce the current blender's credit for a two year period before transitioning to a tax credit that would adjust based on the price of oil. This legislation would also improve upon current tax credits for the installation of blender pumps and ethanol fueling infrastructure and extend tax credits for small ethanol producers as well as for advanced and cellulosic ethanol.
"Affordable energy is a major concern for Americans, and Congress needs to keep energy security on the front burner," Grassley said. "Now more than ever, it's time to ramp up production of traditional energy sources here at home and to expand alternative fuels and renewable energy sources. We've seen what ethanol can do, and the sky is the limit as we move to the next generation and cellulosic ethanol."
Industry groups believe 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.
The bipartisan bill also has five original cosponsors: Senators Mike Johanns, R-Neb., Amy Klobuchar, D-Minn., Al Franken, D-Minn., Tom Harkin, D-Iowa, and Tim Johnson, D-S.D.
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Tagged: ethanol, cellulosic ethanol, National Corn Growers Association, next generation
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