N.D. Ethanol Industry Supports Legislation
N.D. Ethanol Industry Supports Legislationto Extend Tax Credit
North Dakota's ethanol industry applauded legislation being authored by Rep. Earl Pomeroy that extends existing incentives for American biofuel production.
Pomeroy (D-N.D.) and Rep. John Shimkus (R-Ill.) are sponsoring a bill that would extend the 45cents-per-gallon Volumetric Ethanol Excise Tax Credit (VEETC) until 2015. If the Pomeroy-Shimkus bill is not passed into law, the tax credit - which has been in place since 2004 - will expire at year's end.
"All across North Dakota, corn growers and ethanol producers have been working hard to create jobs and economic opportunity," says Jeff Zueger, chairman of the North Dakota Ethanol Council and general manager of Blue Flint Ethanol. "Allowing the VEETC credit to expire would force job losses numbering 112,000 across the country - a risk we cannot afford to take during the current recession. Additionally, the tax credits in this bill provided a net tax revenue of $3.4 billion in 2009."
The Pomeroy-Shimkus bill would also extend a credit for small producers for five years and extend a credit for producing cellulosic ethanol until 2016.
North Dakota's total ethanol production has reached 350 million gallons per year and continues to provide economic support for rural communities across the state. Allowing the VEETC credit to expire would reduce domestic ethanol production and force further importation of foreign fuels.
"We have seen the effects of American jobs lost to overseas in many industries," says Zueger. It would be a devastating blow to our economy to allow the positive growth from ethanol production to follow. We thank Congressman Pomeroy for his leadership and hope Congress will move to approve this legislation quickly, ensuring ethanol's place in the fuel market and future investments for our economic and energy security."
