The Renewable Fuels Association applauded the swift action of the House of Representatives in passing a compromised tax legislation that included extensions of key tax credit for the production and use of domestic ethanol. The bill will now be sent to President Obama for his signature.
RFA President and CEO Bob Dinneen issued the following statement:
“House members have struck a blow to the oil status quo and extended important tax policies that will allow America’s ethanol industry to grow and evolve. Domestic ethanol production helps create jobs and economic opportunity in often overlooked rural communities. Domestic ethanol production reduces America’s tab to petro-dictators across the globe. There is no alternative to gasoline available today that can match ethanol’s energy security and economic benefits. Extending these important incentives creates the necessary space for meaningful discussion of energy tax policy reform to occur. American ethanol producers are committed to responsible reform of ethanol tax policy, but urge Congress to take this opportunity to reform all energy tax policy. Oil producers and other fossil fuel industries still receive hundreds of billions of dollars in taxpayer support despite decades of subsidies and high profits. Now is the time to put all chips on the table and have an honest debate about the merits of all energy incentives. In such a discussion, ethanol’s benefits would be clear.”
The provision passed by both the House and the Senate would extend five key tax provisions, including:
- Blender’s Credit for Ethanol (VEETC). The bill extends the Volumetric Ethanol Excise Tax Credit through 2011 at the current rate of 45¢/gal.
- Tariff on Imported Ethanol.The bill also extends through 2011 the existing 54¢ secondary tariff on imported ethanol and the related tariff on ethyl tertiary-butyl ether.
- Small Producer Tax Credit.The bill also extends through 2011 the 10¢/gal. producer tax credit for small ethanol producers making no more 60 million gallons of ethanol/year. The tax credit is applicable to just the first 15 million gallons of production for eligible producers.
- Excise tax credits for alternative fuel and alternative fuel mixtures. The measure extends through 2011 the 50¢/gal. alternative fuel credit and the alternative fuel mixture tax credits, excluding black liquor (liquid fuel derived from a pulp or paper manufacturing process) from credit eligibility.
- Alternative fuel vehicle refueling property.The measure extends the 30% investment tax credit for alternative vehicle refueling property for one year, through 2011.