Biofuels trade groups agree on sunset for ethanol tax credit

March 22, 2011 |

In Washington, Rachel Gantz of OPIS is reporting that leaders of the Renewable Fuels Association, Growth Energy, the American Coalition for Ethanol and the National Corn Growers Association have agreed to a three-year sunsetting of the Volumetric Ethanol Excise Tax Credit (VEETC).

They propose to replace the VEETC, in year four, with a variable credit tied to the price of oil, plus a requirement that 40 percent of all US cars be flex-fuel enabled and that a dedicated fund be set up to provide assistance for blender pump deployment. The proposed credit which would act like a “floor price” for ethanol, would provide assistance when oil prices are low, and eliminate that assistance when oil prices are high.

More on the story.

Category: Policy

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