Ethanol Tax Incentive Battle Heats Up

CattleNetwork.com
11/23/2010 08:31AM

Sensing time may be running out to preserve the 45-cent-per-gallon ethanol blenders’ tax credit, the ethanol industry was still convinced it can get the tax credit extended and build support for corn-based biofuels. However, several meat and poultry industry interests at the same time renewed their call on Congress to let not only the ethanol blenders’ tax credits expire, but to do away with the ethanol import tariff as well.

According to Feed&Grain.com, the meat groups argue the ever-increasing demand on corn supplies as a feedstock have exacerbated cost-of-production run-ups in their industry, the price of which is now being paid by consumers at grocery checkouts. Its estimate ethanol will utilize 4.7 billion bushels of the 2009-2010 corn crop.

Groups ranging from the American Meat Institute, the National Turkey Federation and the National Pork Producers Council to the American Petroleum Institute have joined together to file suit in federal court to overturn EPA’s decision to allow up to 15 percent ethanol in gasoline used in cars made in 2007 or newer.

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