TO: Reporters and Editors
RE: Bipartisan agreement to end ethanol tax credit
DA: Friday, July 8, 2011
Iowa Secretary of Agriculture Bill Northey today issued statement on the bipartisan agreement in the U.S. Senate to end the 45 cent federal tax credit for ethanol blenders and the tariff on ethanol imports on July 31st rather than on December 31st as under current law.
The agreement would direct two-thirds of the $2 billion in savings, about 1.3 billion, to deficit reduction. The remaining savings, around $668 million, would be used to support the installation of pumps that can sell higher blends of ethanol and other biofuels tax credits.
Northey’s statement follows here:
“I commend the ethanol industry for taking the initiative to be proactive in phasing out the tax credit while working for improvements to our nations fueling infrastructure that will improve competition and make sure customers have fuel choices.
“Ethanol has been and is a vital asset to Iowa’s economy and a tremendous benefit to customers by lowering gas prices, improving our environment and reducing our dependence on foreign sources of oil.
“It is important that ethanol be able to compete on a level playing field. I hope this is the start of an aggressive effort to increase choices for the consumer by encouraging more flex fuel infrastructure and an effort to examine and reduce the tax incentives enjoyed by the oil industry.”
Northey, a fourth generation corn and soybean farmer from Spirit Lake, is serving his second term as Secretary of Agriculture. His priorities as Secretary of Agriculture are promoting the use of science and new technologies to better care for our air, soil and water, and reaching out to all Iowans to tell the story of Iowa agriculture. To learn more visit www.IowaAgriculture.gov. |
