NCGA
Applauds Introduction of House Bill to Expand Small Ethanol Producer
Tax Credit (01-05-05)
As the 109th Congress
convened Tuesday, legislation was introduced that not only benefits
corn growers, but rural America as a whole, noted National Corn
Growers Association (NCGA) President Leon Corzine.
Rep. Steve King (R-Iowa)
introduced a bill, H.R. 36, that makes it easier to qualify for
the so-called “small ethanol producer tax credit,” and
also expands the tax credit to biodiesel producers.
“It’s good
to know that issues important to corn growers and rural America
are on Congress’ radar screen as the legislative work on Capitol
Hill gets underway,” said Corzine. “The issue of expanding
the small ethanol producer tax credit is important because it was
not included as part of the Volumetric Ethanol Excise Tax Credit
provisions in the corporate tax bill that was enacted late last
year.”
Under current legislation,
only small ethanol producers that generate less than 30 million
gallons per year are eligible for a 10-cent-per-gallon tax credit
for up to 15 million gallons of production annually. However, King’s
proposal would allow plants that produce up to 60 million gallons
annually to use the tax credit. The credit is capped at $1.5 million
per year per producer.
“This legislation
is truly a rural economic development tool,” Corzine said.
“Having this legislation in the front of the new Congress
is an important step forward for corn growers and all of agriculture.”