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NCGA
Enlists Allies for Modifying Ethanol Tax Credit (10-23-01)
The National Corn
Growers Association (NCGA) and its ethanol industry allies have enlisted
the support of more than a dozen House members in a push for modifying
the Small Producer Ethanol Tax Credit. In a letter to Ways and Means
Chairman Bill Thomas (R-CA), the co-sponsors of H.R. 1636 urge Thomas
to include modifications to the tax credit in the economic security
package.
"Specifically,
we request that the incentive be available to ethanol cooperatives and
be expanded to producers whose annual ethanol production capacity is
below 60 million gallons," the letter stated.
Currently, small
ethanol producers can receive a tax credit of 10 cents per gallon, with
the credit applying to up to 15 million gallons annually. "While
this credit works well for ethanol production facilities as limited
liability corporations, the credit is not useful as a practical matter
for farmer-owned cooperatives," the letter said. NCGA Director
of Energy & Analysis John McClelland believes cooperatives should
be able to pass the credit through to its members, who can then treat
the credit as if they had generated it directly.
"The small
producer credit pass-through for coop ethanol producers is critical
to the continuing expansion of the industry," said McClelland.
"This is about investing in rural America and our nation's energy
security.
Last
reviewed October 23, 2001
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