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Senate to Include Ethanol Tax Incentive?

July 12, 2010

           

POLITICO is reporting that an extension to the ethanol tax incentive may be in the works on the Senate side.  It is morning reporting, POLITICO wrote: "TAX BREAKS FOR ETHANOL AND OTHER GOODIES - Could be a way to nudge a handful of Rs closer to yes on an energy-only deal. Senate Finance Chairman Baucus and his committee Dems are putting together a package of tax provisions to be bundled with a final renewable-electricity bill. One that a well-informed source tells us is certain to make it in: an extension of the 51-cent per gallon tax credit for ethanol. The inclusion of the tax credit, beloved by Finance ranking Republican Grassley of Iowa, is viewed as a going-away present for the Iowan, and "could help attract certain R senators to vote "yes"." *Note: The tax credit for ethanol is only 45-cents per gallon While it is true that Senator Grassley has long been a champion of biofuels, and ethanol in particular, the fact that leadership is considering it is more reflective of the fact ethanol enjoys bipartisan support than the term limits imposed by the Senate GOP with respect to committees.  The investment made in ethanol technology pays dividends in both increased tax revenue, offsetting any costs associated with the incentive, while reducing oil use.  Members from both sides of the aisle recognize that. With any reports still done without specificity, stay tuned for more developments.