US Congress discusses whether to continue ethanol tax cuts

Recently, a package of ethanol tax reduction plans was being discussed in the United States Senate to decide whether to continue implementing the tax reduction policy until 2011. During this period, every US gallon of ethanol produced will still receive a 45-cent tax credit, while the import of ethanol per gallon will be subject to a 54-cent tariff. Both initiatives have been seen as a major support for the US biofuel industry.
According to Reuters, the two policies will expire on December 31 if they fail to pass the Congress. Two ethanol trade organizations said they believe the deferral bill can be approved in Congress. One of the two ethanol trade organizations, Growth Energy, said this will pave the way for a longer-term biofuels project to enter the discussion.
The economists at Congress stated that the tax bill suggested that the subsidy for biofuels would reach 7 billion U.S. dollars. Continuing to implement the ethanol tax credit policy will cost nearly $5 billion.
If the bill is passed, the $1 per gallon biodiesel tax credit that expired at the end of 2009 will be restored again in 2011. According to the cost estimate for the bill, it will cost nearly $2 billion.
Policies that will continue to be implemented include small ethanol producers enjoying a 10-cent-per-gallon tax credit. The 50 cents per gallon tax credit for petroleum alternative fuels will cost $202 million. However, the paper mill's by-product "black liquor" is not covered by the policy.
Food manufacturers, livestock breeders and environmentalists said that the subsidy policy should be abolished. Brazilian ethanol producers believe that tariffs should be exempted.
Major ethanol producers say that their renewable fuels account for nearly 10% of gasoline sales, reducing US dependence on imported oil and one of the channels of employment in rural America. Without a tax credit, ethanol production may fall by 5 percent, said a think-tank at Iowa State University. "Let these clauses fail to be clever and confusing," said Senator Chuck Grassley of Iowa who supports biofuels.
The ethanol industry said that if they are part of a long-term biofuel program, they can accept lower subsidies and other reforms.
It has been proposed to replace the ethanol tax credits with producer tax credits, or to establish a fund to purchase 85% ethanol blended fuel refuelling pumps and to provide mortgage loans for the construction of ethanol pipelines in place of tax credits .
“We look forward to this opportunity next year, when the Congress is expected to propose some energy legislation,” said Tom Buis, a grower of energy. He said that the discussions on the long-term policy with the White House have been put aside, and the ethanol tax cut policy is being negotiated for another year.
The $1.01 tax credit for cellulosic ethanol will expire in 2011. Woody plants, grasses and crop stalks all contain a large amount of cellulose, which is widely sourced and is considered to be the main ethanol feedstock to replace corn.

We manufacture Lovol Diesel Generator with good price and high quality.

Open Type,

Silent Type.

Mobile Wheels trailer tyle.

Automatic Type.

2 years warranty.

10 Days delivery.


Tianjin Lovol Engines Co., Ltd. Which is the prior Perkins(Tianjin) Co.,Ltd , Sino-British Joint Venture Perkins(Tianjin) Co., Ltd, founded in 1997, occupied the land of 88,000m2, workshop occupied 26,000m2, seven modernized production lines have been purchased from the UK, the USA, Germany, France, etc., and the production base for 60,000 sets of diesel engines has been established.


Lovol Diesel Generator

Lovol Engine Generator, Lovol Engine Generator Set, Lovol Diesel Portable Generator, Lovol Diesel Power Generator

Weifang Huatian Diesel Engine Co., Ltd , http://www.higenset.com