NCGA
Encourages Growers to Voice Support for Ethanol Provisions in Corporate
Tax Bill (9-15-04)
With the fate of the
corporate tax bill lingering and mixed signals coming from Capitol
Hill, NCGA is urging Congress and the administration to work together
to pass the corporate tax bill that includes the Volumetric Ethanol
Excise Tax Credit (VEETC) before Congress adjourns in October.
Both the House and Senate
versions of the corporate tax legislation (S.1637 and H.R. 4520)
include the VEETC provisions. The VEETC would extend to 2010 an
existing tax incentive for using ethanol-blended gasoline, and would
redirect funds generated by an excise tax on ethanol to the highway
trust fund. The corporate tax bill is scheduled to enter conference
negotiations.
“We need growers
to get the message to members of Congress and the administration
that VEETC is critical to growers,” said Samantha Slater,
NCGA director of policy. “The Senate named conferees before
the summer recess. However, the House has yet to name its conferees.
We need to continue to push Congress to get this legislation to
the president’s desk before it adjourns in October.”
The bill originated as
a measure to repeal the Foreign Services Corporation/Extraterritorial
Income Act (FSC/ETI) and now includes tax breaks that are aimed
at oil and gas, coal, nuclear, renewable energy and energy efficiency
programs.
The tax incentive will
make a great contribution to the development of rural economies
by enabling growers to build farmer-owned ethanol cooperatives,
providing more than 200,000 jobs annually and contributing to the
nation’s long-term energy security.
“This bill very
well could be the only vehicle to get VEETC to the president’s
desk before Congress adjourns,” Slater said. “More importantly,
this could be the only energy-related legislation passed this year.
We need VEETC, and the Midwest battleground states are essential
to getting this bill done.”
Last week, NCGA joined
more than 300 businesses and trade association in sending a letter
to Congress urging immediate action on the corporate tax bill and
conveying the need for passage of a conference agreement before
adjournment. NCGA advocates passage of the legislation and continues
to urge President Bush to play a greater role in ensuring completion
of a final conference report as quickly as possible.
To send letters to Congress
and the president, click
here.