Senators Target Ethanol Tax Credit
Ames, IA – A deal brokered by Sens. Dianne Feinstein (D-Calif.), John Thune (R-S.D.) and Amy Klobuchar (D-Minn.) to end tax credits and tariffs that subsidize the U.S. ethanol industry is a step in the right direction.
“Thanks to Senator Feinstein's leadership, we are witnessing a remarkable reversal of fortune for the ethanol and corn lobbies,” said Craig Cox, Environmental Working Group Senior VP for Agriculture and Natural Resources. “This deal is a welcome sign that the iron grip these lobbies have had on biofuel policy is loosening.”
”However, there’s still a long way to go to get U.S. biofuels policy on the right track,” Cox added. “We encourage lawmakers to make a clean break with corn ethanol, American taxpayers shouldn’t be called upon to support this industry any longer.”
The senators’ plan would eliminate the ethanol tax credit, which benefits the industry to the tune of $6 billion this year. The plan would also strike the tariff on imported ethanol and other biofuels. But it would keep in place other subsidies and tax breaks for ethanol infrastructure and smaller ethanol operators.
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