Contact: Joshua Morby 414.791.9120
MILWAUKEE – Ethanol-related trade groups have shared a plan with federal lawmakers that would phase down the ethanol tax incentive after three years and replace it with a variable tax credit, which would be tied to the price of oil.
The proposal comes as representatives from biofuel groups are meeting this week with the USDA to discuss their industry’s next steps. An increasing number of legislators are calling for the Volumetric Ethanol Excise Tax Credit (VEETC) to end, citing the need to reduce government spending.
According to the proposal, ethanol industry groups have agreed to phase down the current 45 cents/gal ethanol tax credit over three years and replace it beginning in the fourth year with a variable blenders’ tax credit tied to the price of oil. The proposal would include build out biofuels-related infrastructure with more flexible fuel vehicles (FFVs) and blender pumps.
“Wisconsin is one of our nation’s leaders in biofuel production, and we need to continue to work to improve governmental support for this key national effort,” said Joshua Morby, Executive Director of the Wisconsin Bio Industry Alliance. “In order to fully secure energy independence and grow the Wisconsin economy, we must invest in production in Wisconsin and around the region. We are hopeful that we will continue to receive support from our leaders in Washington to maintain a robust and stable supply of ethanol to not only increase our energy independence, but provide good, family-supporting jobs right here in our state.”
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.