May 8, 2011 Grassley-Conrad Bill to Phase out Ethanol Tax Credit
Senators Chuck Grassley (R-IA) and Kent Conrad (D-ND) May 4 introduced bipartisan legislation to update ethanol tax policies in an effort to boost domestic energy production and increase America’s energy independence and security. This bill would significantly reduce tax incentives for ethanol by extending through 2016, at descending levels, the volumetric ethanol excise tax credit (VEETC), the alternative fuel refueling property credit, the cellulosic producers’ tax credit, and the special depreciation allowance for cellulosic biofuel plant property.
As ethanol already makes up nearly 10 percent of the U.S. fuel supply, the Senators noted that many of these existing tax policies have helped to successfully develop ethanol and reduce America’s dependence on foreign oil while generating economic activity in the U.S. This piece of legislation is designed to ensure certainty that is necessary for additional private investment and job creation to further develop ethanol as a leading alternative energy source.