Grassley introduces Domestic Energy Promotion Act to extend biofuels tax credits

In Washington, Sen. Chuck Grassley, R-Ia has introduced legislation that would see the 45-cent ethanol tax credit cut to 20 cents in 2012 and 15 cents in 2013 but it could swing as high as 30 cents depending on the price of oil. With $80 oil the credit would fall to 6 cents and at $90, the credit would be zilch. T

he Biotechnology Industry Organization (BIO) expressed thanks to Sen. Charles Grassley (R-Iowa) for introducing the Domestic Energy Promotion Act of 2011, which would extend the availability of the cellulosic biofuel tax credit which it says are vital to attracting investment needed to build a robust, sustainable renewable industry.

Brooke Coleman, Executive Director of the Advanced Ethanol Council, released the following statement:  “We applaud Senator Grassley’s continued leadership on this issue. The proposal strikes the right balance between providing savings to the taxpayer, developing the infrastructure necessary to incorporate growing volumes of ethanol from all feedstocks, and extending the incentives that are critical to the development of next generation ethanol fuels.

“The tax incentives for advanced and cellulosic ethanol contained in Senator Grassley’s proposal will help our industry put steel in the ground and create jobs and economic activity that cannot be exported. They are the type of tax incentives already provided for the fossil fuels industry, and extending these incentives helps begin the process of leveling an uneven playing field with gasoline and other petroleum fuels. Most importantly, this proposal establishes a durable and consistent tax framework for our industry, which in turn will facilitate substantial investment in domestically-produced advanced ethanol fuels and allow our sector to reach its full potential.”