May 07, 2010
(Finance &Commerce) Ethanol backers urge tax-credit extension
As Congress debates federal tax policy, executives of pro-ethanol group Growth Energy are warning of threats to the domestic biofuels industry – and held a news conference Wednesday to warn of dire consequences for Minnesota.
Growth Energy executives were joined by leaders of the Minnesota Corn Growers Association at a State Office Building media briefing.
Like wind and solar energy developers, the U.S. corn ethanol industry has warned that failure to extend federal tax credits for ethanol production and tariffs on imported ethanol — mostly from Brazil — would disrupt efforts to achieve U.S. energy independence.
Growth Energy wants Congress to extend the 45-cents-per-gallon tax credit for ethanol producers and 54-cents-per-gallon tariff on subsidized foreign ethanol.
If those benefits end as scheduled Dec. 31, Minnesota job losses would total 3,405 in the first year after the tariff’s lapse — jumping to 9,946 lost jobs in the second year and 13,597 in the third year.
In dollar terms, the Minnesota economy would lose $817 million during the first year after federal tax and tariff protection ends, Growth Energy said.
U.S. Reps. Collin Peterson and Tim Walz, both Minnesota Democrats, are co-authors of a bill that contains ...
