Variable Incentive To Ethanol Blenders Could Save $13 billion

CattleNetwork.com
11/01/2010 11:29AM

The current legislation that enables ethanol blenders to receive a 45 cent per gallon incentive expires at the end of the year. In anticipation of new legislation, a proposal was developed by University of Illinois economists for a variable incentive program that could save U.S. taxpayers more than $13 billion.

"There are proposals that would eliminate the tax credit entirely and others to keep it exactly as is," said U of I agricultural economist Scott Irwin. "We decided to take a look at a different form of a tax credit that would be keyed to the incentives of the blenders themselves rather than just giving them a fixed amount of tax credit regardless of the economics of blending."

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