Proposed legislation would reduce ethanol tax credit for two years

Proposed legislation that would reduce the Volumetric Ethanol Excise Tax Credit for a two-year period before transitioning to a tax credit that would adjust based on the price of oil has gained support from the National Corn Growers Association, the American Coalition for Ethanol, Growth Energy and the Renewable Fuels Association.
The Domestic Energy Promotion Act of 2011, spearheaded by Iowa Senator Chuck Grassley, would also improve upon current tax credits for the installation of blender pumps and ethanol fueling infrastructure, and would extend tax credits for small ethanol producers as well as for advanced and cellulosic ethanol. "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,” said the groups. “This legislation rightfully recognizes budget constraints by reforming the ethanol tax credit and significantly reducing its cost. 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"