(NAFB) – The Volumetric Ethanol Excise Tax Credit and the small ethanol producer tax credit both expire on December 31, 2010. A new report from the Renewable Fuels Foundation says the expiration of these tax incentives would result in the loss of 112-thousand jobs in all sectors of the economy. We can also expect; 38 percent of domestic ethanol production to be lost; increased reliance on imported motor fuels; loss of support for second-generation biofuels; and household income would be reduced by 4.2-billion dollars.
Bob Dinneen, president of the Renewable Fuels Association says – America’s ethanol industry is building a strong foundation for a robust renewable fuels industry in this country. Failure to provide the kind of assurance investors require to continue building out this industry by not extending the tax incentives would be shortsighted, relegating future generations to a reliance on both foreign oil and foreign renewable fuels. Dinneen says – the question is not whether ethanol will be used – the Renewable Fuels Standard requires it. The question is, from where will the ethanol come?
Iowa Senator Chuck Grassley says – Congress and the President – have every reason for concern about what could happen with ethanol this year. That industry supports 400-thousand jobs, and more than 112-thousand jobs depend on extending the tax incentives. Grassley points out – these jobs are often in rural communities where employment is hard to come by. Grassley says – Congress needs to make sure the ethanol tax incentives are extended sooner rather than later.
