The Renewable Fuels Association is praising the bipartisan Renewable Fuels Reinvestment Act (RFRA) introduced by Representatives Earl Pomeroy (D-ND) and John Shimkus (R-IL). The bill, HR 4940, would extend the $0.45 Volumetric Ethanol Excise Tax Credit (VEETC), commonly called the blenders’ credit, and the secondary tariff on imported ethanol until December 31, 2015. It would also extend the Small Producers Tax Credit and the Cellulosic Ethanol Production Tax Credit to January 1, 2016.
“Allowing the tax incentives for ethanol to expire is simply not an option,” says Renewable Fuels Association president Bob Dinneen. “Failure to extend these incentives would force 112,000 Americans out of their jobs and shutter nearly 2 out of every 5 ethanol plants operating today. Long term extensions of these important incentives are good policy that encourages investment in current and next generation ethanol technologies.”
“At a time when our economy is struggling, we cannot afford to let these tax incentives expire and stymie the growth we have seen in our ethanol industry,” Congressman Pomeroy says. “This is a bipartisan bill that will promote not only economic growth, but also the transformation of our energy industry from one that is reliant on foreign oil to one that is based on energy that’s grown in farm fields in the heartland of America.”
“I have been a long-time supporter of renewable fuels,” Congressman Shimkus says. “Extending the ethanol and cellulosic tax credits helps give much needed certainty to the industry and will continue to help our nation’s energy security.”
“Representatives Pomeroy, Shimkus and their fellow cosponsors are showing tremendous leadership and foresight,” Dinneen says. “I urge all members of Congress to take this opportunity to learn the real facts about American ethanol production and, ultimately, pass this bill as soon as possible.”
Extending the tax incentives for all ethanol is the top legislative priority of RFA members. Specifically, the Renewable Fuels Reinvestment Act would:
- Extend the $0.45 per gallon tax credit available to oil and gasoline refiners for each gallon of ethanol they blend through December 31, 2015. VEETC is set to expire at the end of 2010.
- Extend the corresponding secondary tariff on ethanol through December 31, 2015. The secondary tariff exists to offset the benefit of the VEETC which is available to all sources of ethanol, regardless of its country of origin. The tariff sunsets at the end of 2010.
- Extend the Small Producers Tax Credit until January 1, 2016. This $0.10 per gallon tax credit is available on the first 15 million gallons of ethanol produced by ethanol companies producing no more than 60 million gallons per year. This tax credit expires at the end of 2010.
- Extend the Cellulosic Ethanol Producer Tax Credit until January 1, 2016. Currently, cellulosic ethanol is eligible for both the $0.45 per gallon VEETC as well as an addition $0.56 per gallon production tax credit. This tax credit expires at the end of 2012.
(Source: Renewable Fuels Association)