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Ethanol tax credit set at 45 cents

DANIEL LOOKER 12/09/2010 @ 6:19pm Business Editor

The Senate's tax bill will include a 45 cent-per-gallon ethanol tax credit for one more year, through the end of 2011, a spokesperson for Senator Chuck Grassley (R-IA) told Agriculture.com at Thursday evening.

The tax credit is in the draft of the tax extension bill the Senate is expected to vote on soon, said Beth Pellett Levine.



The law will also reinstate the $1 a gallon biodiesel tax credit, retroactively for 2010 and through 2011, she said.

Grassley's staff held out for the tax credit against strong pressure. A bipartisan coalition of Democrats and Republicans in the Senate earlier called for ending the tax credit, which will cost more than $5 billion this year. Grassley and other supporters of the ethanol industry have argued that the tax credit creates jobs and adds more to the economy than any federal savings if the credit expired.


Even though some senators who support ethanol were willing to go along with a slightly lower subsidy, Grassley wanted to pass all expiring tax credits without making major changes in policy this year.  

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Terrorist Grassley - Praised by Daniel 12/11/2010 @ 1:37pm Grassley extored from 2 million US Citizen's your beloved tax credit. Chuck tries to cover the stench of his hostage taking by bragging of his ethanol & biodiesel breaks for his favorite few businesses. You, Daniel, make a hero a TERRORIST & HOSTAGE TAKER! As Mr. Ellis identifies why this should not have been part of the tax proposals. The proposal could not stand on it's own !

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Ethanol subsidy 12/10/2010 @ 10:11pm I have no problem with ethanol being voted on but it should stand on it's own merits with a UP or DOWN vote instead of being attached to the extenson of the present tax structure this will do nothing but increse the budget it seams that somebody did not learn from the past election the American people did not vote to have this happen this way. If a bill can not stand on it;s owm merits then it should be trashed or rewriten,.

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