US Representatives submit The Low Carbon Biofuel Credit Act for consideration

In Washington, Rep. Cindy Axne (IA-03) introduced bipartisan, bicameral legislation to expand the use of low-carbon renewable fuels and reduce greenhouse gas emissions by creating a new tax incentive for fuel with higher blends of ethanol.

The Low Carbon Biofuel Credit Act, which was introduced in the House with Rep. Adrian Smith (NE-03), would create a tax credit for each gallon of fuel containing 15 percent or greater ethanol content (E15).

The bill would allow an ethanol blender or fuel retailer to claim a 5 cent tax credit for each gallon of E15 blended or sold and a 10 cent tax credit for each gallon greater than E15 blended or sold.

This legislation would also allow the credit to be fully refundable and transferable for small retailers.