In spite of the coverage you’re seeing of angry liberals in the House and of Senator Bernie Sanders’ (I-VT) filibuster in the Senate, the Obama-congressional compromise on extending tax cuts is very likely to pass, and the new law is almost certain to continue the ethanol tax credit for another year at the current rate of 45 cents a gallon.
This strong possibility wouldn’t even exist without several breaks for the industry, says an influential member of the House, a key Senate staffer and ethanol insiders.
Leaders of Growth Energy, the newest of several groups
lobbying for ethanol, expressed thanks Friday for the Senate’s inclusion of a
45 cent a gallon tax credit for ethanol in a tax bill the is expected to come
up for a vote on Wednesday. And they looked ahead to passage in the House.
“First, we want to thank both President Obama and a number
of congressional champions for incuding the ethanol tax credit extensions in
the legislation,” said Tom Buis, CEO of Growth Energy.
Groups that lobby for the ethanol industry thanked supporters in the Senate Thursday for getting a one-year extension of the 45 cent per gallon tax credit included in pending tax legislation.
Brian Jennings of the American Coalition for ethanol released this statement late Thursday:
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.
On Thursday, Marc Curtis, of Leland, Mississippi, was
elected chairman of the United Soybean Board, which administers the national
soybean checkoff of 0.5% of the initial gross sales of soybeans.
The Board’s current fiscal year, which started last
October, is projected to have enough carryover funds and revenue for a record
budget of $103.5 million, thanks to strong soybean prices.
After meeting with Republican leaders Tuesday morning Senator Chuck Grassley, the ranking GOP member of the Senate Finance Committee, told reporters that 71 tax credits that expired in 2009 as well as credits expiring this month will be renewed to last through the end of 2011 as part of the tax deal worked out between Congress and the White House.
"I'm led to believe the extenders of 2009 would be extended for the years 2010 and 2011," the Iowa Senator said. That would be good news for the struggling biodiesel industry, which lost its $1-a-gallon tax credit at the end of 2009.
In these uncertain times the year that just began looks murky, except for these bets
The ethanol industry scored a public relations coup
Thursday when NASCAR officials announced at their annual awards meeting in Las
Vegas that its 2011 races will be powered by Sunoco Green E15.
It’s a project of the ethanol trade group, Growth Energy
and the National Corn Growers Association and state affiliates. The groups have
formed a new entity, American Ethanol, which will be sponsoring the campaign.
Late Thursday Senate Finance Committee Chairman Max
Baucus (D-MT) unveiled a bill to extend middle class tax cuts that also
includes a one-year extension of the ethanol tax credit through 2011. The
Volumetric Ethanol Excise Tax Credit, or VEETC, would fall from the current 45
cent a gallon rate to 36 cents.
As behind-the-scenes negotiations of the fate of Bush-era
tax cuts continue, one senator who supports keeping a tax credit for ethanol
said Thursday that he’s not certain of its fate.