Agricultural News
Corn and Sorghum Groups Agree- Extension of Ethanol Tax Incentives in Best Interests of Industry
Thu, 15 Jul 2010 10:58:25 CDT
The American Coalition for Ethanol, the National Corn Growers Association, the National Sorghum Producers, and the Renewable Fuels Association today reaffirmed their support for two identical pieces of legislation that would extend current ethanol tax incentives through 2015. Current ethanol tax policies are working to build out the industry, expand infrastructure, and provide the foundation for new technologies to thrive.
"If Congress fails to extend ethanol tax incentives beyond 2010, more U.S. jobs will be lost and energy independence will be reversed, two dangerous consequences that America cannot afford," said American Coalition for Ethanol Executive Vice President Brian Jennings. " For years ACE has supported legislation to ensure more Flexible Fuel Vehicles and blender pumps are available to help overcome the E10 blend wall. Moreover, we have examined alternatives to VEETC, some which are appealing, and we have talked to policymakers about alternatives to VEETC. The universal response we have received from our champions on Capitol Hill is that while some of those alternatives are interesting, those alternatives cannot possibly be adopted at this stage in the legislative calendar, with just about 30 days remaining until Congress adjourns for the mid-term elections. Based on that congressional feedback and in consultation with other ag and ethanol groups, we have come to the conclusion we need to support the dozens of Members of Congress in both parties who are fighting to extend the current tax incentive as long as we can. At the same time, we will continue to fight aggressively in support of FFV and blender pump policies to help break through the blend wall."
"Our grassroots membership has made it clear that extension of the VEETC and support of our champions in the Congress is vital," said National Corn Growers Association President Darrin Ihnen, a corn grower in Hurley, S.D. "As our board and voting delegates visited with members of Congress this week it was apparent that time is short and extension is in the best interests of the corn industry."
"Continuing these tax incentives will be critical to add much needed green jobs throughout the Sorghum Belt and rural America," said Gerald Simonsen, National Sorghum Producers Chairman. "To abandon these credits at this point will have devastating effects on a young but growing ethanol industry."
"There can be no question that the current tax policies to support the evolution of America's ethanol industry have been successful," said Renewable Fuels Association President Bob Dinneen. "Now is not the time to add uncertainty and complexity to the energy tax debate. Because the EPA has failed to act to allow higher level ethanol blends, margins in the industry are razor thin. Losing the tax incentive now will shutter plants and cost tens of thousands of jobs. This is a serious discussion with real world implications. Numerous ideas exists and due diligence must be done to ensure the right ideas are put together so as to foster the continued growth of this industry."
The bills, the Renewable Fuels Reinvestment Act (HR 4940) and the GREEN JOBS Act (S. 3231), would extend four key ethanol tax incentives through the year 2015, including the $0.45 per gallon blenders credit for ethanol use.
All the groups encourage Senate leaders to include this legislation in upcoming discussions of an energy bill as outlined by Senate Majority Leader Harry Reid.
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