Contact: Joshua Morby 414.791.9120
MILWAUKEE, Wis. – The Volumetric Ethanol Excise Tax Credit (VEETC) will continue after the Senate rejected a measure to end the credit for ethanol blenders today.
It’s good news for Wisconsin’s ethanol producers and the hundreds of workers the industry employs throughout the state of Wisconsin, but WBIA members are concerned that Wisconsin’s senators were split in their decision earlier today. Senator Herb Kohl voted in favor of continuing the credit while Senator Ron Johnson supported its repeal.
“WBIA members are pleased that the Senate has voted to support ethanol producers in providing viable alternatives to petroleum-based fuels,” says Joshua Morby, executive director of the Wisconsin Bio Industry Alliance (WBIA). “We are disappointed in Senator Johnson. His opposition is a short-sighted approach to a long-term situation.”
The Volumetric Ethanol Excise Tax Credit was originally created as part of the American Jobs Creation Act of 2004. It provides a $0.45-per-gallon tax incentive to qualifying ethanol blenders of pure ethanol blended with gasoline.
Senator Tom Colburn of Oklahoma had introduced an amendment late last week to eliminate nearly $5 billion in tax credits to the ethanol industry. The measure was voted on today in the Senate, where it was rejected on a 40-59 vote, falling 20 votes short of the 60-vote majority needed to implement it.
“Eliminating this tax credit is bad for Wisconsin,” says Morby. ”Last year, Wisconsin’s ethanol producers contributed more than $1.2 billion to the state’s economy. This knee-jerk proposal by Senator Coburn, with the support of Wisconsin Senator Ron Johnson, would have put this Wisconsin industry in jeopardy.”
Wisconsin ranks ninth in the nation in ethanol production with overall capacity of more than 500 million gallons. There are nine large-scale ethanol plants in the state. In 2010, Wisconsin’s $1.168-billion ethanol industry produced 462 million gallons of ethanol.
The Wisconsin Bio Industry Alliance is a diverse group of businesses, environmental groups, and statewide and local organizations that have come together to build both public and legislative awareness of the Bio Industry in Wisconsin.
For more information about the Alliance, or to find out how to join, please visit our website: http://www.wisconsinbioindustry.com.
