NCGA News














NCGA Applauds Congressional Passage of Corporate Tax Bill (10-11-04)

The National Corn Growers Association (NCGA) hailed Senate passage today of the corporate tax bill conference report, which includes ethanol and biodiesel provisions.

The bill passed the Senate by a 69 to 17 vote. The conference report passed through the House Oct. 7 by a 280 to 141 vote.

“Corn growers scored a big win with the passage of this legislation and its energy tax incentives, but we are by no means finished,” said NCGA President Leon Corzine. “We must have a comprehensive energy bill that includes a renewable fuels standard. NCGA will continue to work hard to secure a comprehensive energy policy for our nation as quickly as possible.”

The Volumetric Ethanol Excise Tax Credit (VEETC) provision included in the corporate tax bill will extend to 2010 an existing tax incentive for using ethanol-blended gasoline, and re-direct funds generated by an excise tax on ethanol to the highway trust fund.

Additionally, the small ethanol producer credit provision included in the bill will make farmer-owned cooperatives eligible for this tax credit, which will provide millions of dollars per year in tax relief for farmer owners. The biodiesel provision will create a new tax credit of $1 per gallon for agri-biodiesel, and 50 cents per gallon for biodiesel (recycled oil).

“ All of these important incentives will continue to grow the ethanol industry by attracting new investments in ethanol plant development,” Corzine said. ”Increased ethanol production is good for our farmers, our communities and our environment.

”We applaud members of both the House and Senate for working so hard to pass such an important piece of legislation that will not only benefit rural America but the entire nation,” he continued.

The bill will now move to President George W. Bush’s desk. Pundits expect the president to sign the bill. “We have no doubt President Bush will sign this bill,” Corzine said. “He understands the important role agriculture plays in growing our country’s energy future.”

Last reviewed October 11, 2004



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