NCGA Applauds Corporate Tax Bill Mark That Includes Ethanol and
Biodiesel Provisions (10-05-04)
The National Corn Growers
Association (NCGA) applauds Chairman Bill Thomas (R-Calif.) and
conferees of the corporate tax bill
for including both the Volumetric Ethanol Excise Tax Credit (VEETC)
provision and the biodiesel tax incentives in the chairman’s
mark of H.R. 4520 last night. Additional amendments are expected
to be offered today.
The VEETC provision would extend to 2010 an existing tax incentive
for using ethanol-blended gasoline, and would re-direct funds generated
by an excise tax on ethanol to the highway trust fund (HTF). The
biodiesel incentive provision would create a new tax credit of
$1 per gallon for biodiesel, and 50 cents per gallon for biodiesel.
“Inclusions of these critical provisions in the chairman’s
mark move forward the debate on ethanol issues important to corn
growers,” said Samantha Slater, NCGA director of public policy. “NCGA
remains optimistic on completion of a final conference report with
the inclusion of these energy tax provisions. We continue to work
hard to get the message across to Congress that not just rural
America needs this bill, but all Americans will benefit by its
passage.”
In addition, some elements of the small ethanol producer tax
credit provision are included in the chairman’s mark. The
definition of a “small ethanol producer” remains
at 30 million gallons. However, the chairman’s mark
allows the credit to be offset against the alternative minimum
tax (AMT), and allows the 10-cent-per-gallon production income
tax credit on up to 15 million gallons of production annually
to be allocated to the members of a farmer cooperative, allowing
each farmer member of a small ethanol-producing cooperative to
receive a tax credit on his or her share of the company’s
production in any given year.
A conference committee meeting today will allow conferees to
offer additional amendments to the chairman’s mark.Thomas
hopes to complete work on a final conference report by tomorrow
to allow the House and Senate time to consider a final conference
report before Congress is scheduled to adjourn on Oct. 8.
To view the
details of chairman's mark http://waysandmeans.house.gov/Links.asp?section=1559