NCGA Seeks Support from Senate Committee on Energy Bill Provisions
(6-8-06)
In anticipation of the Senate Finance Committee
markup of the energy bill tax title late next week, the National
Corn Growers Association (NCGA) asked the committee to consider
including four provisions important to the development of the U.S.
renewable fuels market and increasing domestic natural gas resources.
NCGA President Leon Corzine made the request Tuesday
in a letter to committee chairman Sen. Charles Grassley (R-Iowa).
“NCGA asks the Committee to include in the
tax title of the energy bill provisions that will: (1) expand the
definition of a ‘small ethanol producer’ to 60 million
gallons annually, (2) extend the biodiesel excise tax credit through
2010, (3) provide for the long-term extension of the wind energy
Production Tax Credit (PTC), and (4) provide for a federal incentive
program to stimulate commercial deployment of integrated gasification
combined cycle (IGCC) and industrial gasification technology,”
the letter said.
The suggested provisions would provide tax credits
to corn growers who are ethanol producers; extend the biodiesel
tax credit through 2010, which will lower the cost of biodiesel
to consumers and add almost $1 billion to the bottom line of farm
income; enact an incentives package to begin the deployment of coal
gasification technologies; and provide a long-term tax credit for
the wind energy Production Tax Credit, which would allow the industry
to grow and allow farmers to gain supplementary income.
The letter states corn growers rely on affordable
natural gas as a feedstock for fertilizer, irrigation, powering
farm equipment, grain drying and ethanol production, adding that
increased natural gas prices have had an adverse effect on farmers.
“NCGA supports a federal incentive program to stimulate commercial
development of IGCC and industrial gasification technology,”
the letter reads
The letter concluded, “NCGA urges Congress
to act expeditiously to promote the development of domestic renewable
energy resources to help secure future economic growth for our nation.
Congress needs to enact a comprehensive energy policy now that provides
an enhanced role for renewable energy sources, further development
of all energy resources for a more diverse portfolio, and environmentally
sensitive production of adequate domestic supplies of natural gas.”
To read the
letter in its entirety click
here