The Renewable Fuels Association applauded the approach of Senate Finance Committee Chair Max Baucus in his efforts to extend critical tax incentives for domestic ethanol. In a proposal released Thursday night (Dec. 2), Senator Baucus would extend the Volumetric Ethanol Excise Tax Credit (VEETC) for ethanol use for one year at a rate of 36 cents per gallon.
“Investments in ethanol are proven policies that create jobs and put America firmly on the path to energy self-reliance,” Renewable Fuels Association President and CEO Bob Dinneen said. “Senator Baucus’s approach is a good one, recognizing the importance of this investment and providing some market stability as good faith efforts to responsibly reform ethanol tax policy continue. We are encouraged by Senator Baucus’s efforts, and those of the Senators Grassley, Conrad, and others who recognize the value of maintaining and incenting the growth of America’s renewable fuels industry. Continuing to invest in a domestic ethanol industry will help save the jobs of tens of thousands of Americans in the short term and provide the catalyst for the commercialization of new biofuel technologies into the future.”
In addition to supporting the Baucus proposal, the RFA also encourages lawmakers to seek opportunities to provide a refundable investment tax credit to emerging biofuel technologies. Such a credit would accelerate commercialization of these technologies by reducing the initial capital costs to build the first commercial-scale facilities.