Bipartisan Proposal Updates Ethanol Tax Policy, Generates Jobs
Washington - Senators Chuck Grassley of Iowa and Kent Conrad of North Dakota today introduced bipartisan legislation to update ethanol tax policies in an effort to boost domestic energy production and increase America's energy independence and security.
The bill also has the original co-sponsorship of Senators Mike Johanns of Nebraska, Amy Klobuchar of Minnesota, Al Franken of Minnesota, Tom Harkin of Iowa, Tim Johnson of South Dakota, and Ben Nelson of Nebraska.
"Affordable energy is a major concern for Americans, and Congress needs to keep energy security on the front burner. Now more than ever, it's time to ramp up production of traditional energy sources here at home and to expand alternative fuels and renewable energy sources. We've seen what ethanol can do, and the sky is the limit as we move to the next generation and cellulosic ethanol," Grassley said.
"Our nation is spending more than $850 million every day on imported energy," Conrad said. "Imagine what it would be like if we spent that money on energy from the Midwest instead of the Middle East? We need to do more to boost domestic energy production, especially from alternative fuels such as ethanol."
The bill introduced today - the Domestic Energy Promotion Act of 2011 -would reduce significantly tax incentives for ethanol. It would extend, through 2016, at descending levels, the volumetric ethanol excise tax credit, or VEETC, which is also known as the blenders' credit. It also would extend, through 2016, the alternative fuel refueling property credit; the cellulosic producers' tax credit; and the special depreciation allowance for cellulosic biofuel plant property.
The Senators noted that many of these existing tax policies have helped to successfully develop ethanol, the only source of alternative energy that is substantially reducing America's dependence on foreign oil and generating economic activity in the United States.
Ethanol already comprises nearly 10 percent of the U.S. fuel supply. The Senators said they introduced their legislation because it would provide the certainty that's necessary for the additional private investment and job creation that will help further develop ethanol as a leading alternative energy source.
"The debate over energy tax policy should be comprehensive and include all sources of energy. With this bill, ethanol has taken the lead in looking forward. No other energy sector has stepped up to do that in the current legislative debate," Grassley said.
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