Thursday, January 06, 2005

New Legislation Proposed to Expand Ethanol/Biodiesel Small Producer Tax Credit

Grainnet reports that Steve King (R-IA) has introduced legislation (H.R. 36) that would expand the existing small ethanol producer tax credit, and extend the credit to biodiesel producers.

"Small" ethanol producers - facilities that produce less than 30 million gallons of ethanol annually - are currently eligible for a tax credit of 10 cents per gallon up to 15 million gallons of production annually. The new legislation would change the definition of a "small" ethanol producer from 30 million gallons to 60 million gallons, an adjustment that according to Grainnet "more accurately reflects [the size of] modern ethanol facilities."

The text of the legislation is not yet available, but it reportedly also extends the credit to biodiesel producers. We'll post a link as soon at the text is available.

No comments: