Lower rate for ethanol credit likely

Agriculture.com
by DANIEL LOOKER, Business Editor
12/09/2010 @ 12:14pm

Democrats in Congress who don't like the tax extension compromise worked out between the Obama administration and Republicans are still fighting for changes in the tax break extension.

One of them, Senator Tom Harkin of Iowa, told Agriculture.com Thursday that he's seeking support from the White House for mandating more flexible fuel vehicles and supporting blender pumps if the current tax credit of 45 cents a gallon is lowered in the tax bill.

"They have taken no position on this. I'm talking to them," Harkin said.

Those changes would allow more access to the market for ethanol and changes such as requiring auto makers to adapt more vehicles to burn up to 85% ethanol wouldn't be a direct cost to the federal government.

Read more