NCGA
Hails Passage of Highway Bill
(4-2-04)
The National Corn Growers Association
(NCGA) today applauded the House of Representatives for its approval
of a transportation reauthorization bill (H.R. 3550) that extends
and revises the ethanol tax incentive. The bill passed on an overwhelming
vote of 357-65.
The bill includes the Volumetric Ethanol Excise Tax
Credit (VEETC), a measure that will generate an additional $2 billion
per year in Highway Trust Fund (HTF) revenues by modifying the way
federal excise taxes are collected on ethanol-blended fuels. The VEETC
provision also extends the incentive through 2010.
“This is an important step forward for the ethanol
industry,” said Dee Vaughan, NCGA president. “We sincerely
thank Congress for its dedication to this important piece of legislation.
In a time when gas prices are skyrocketing, this bill represents one
solution to finding ways to reduce our dependence on oil coming from
OPEC nations. Passing VEETC will enable the ethanol industry to expand
our domestic fuel supplies.”
The U.S. Department of Agriculture says VEETC will
also save the federal government more than $3.2 billion annually in
farm program payments. Proponents of ethanol also estimate the tax
incentive will stimulate rural economies and spur growth in the jobs
market.
Vaughan said VEETC
also gives ethanol-blended fuel refiners and marketers more flexibility
to use different volume blends. Refiners will now be able to optimize
their ethanol blend levels for octane, toxic reduction, or volume,
depending on their own needs, he said.