FOR IMMEDIATE RELEASE
Contact: 
Kristin Brekke, American Coalition for Ethanol kbrekke@ethanol.org / (605) 334-3381

U.S. Congress Stands Behind Domestic Ethanol, Extends Secondary Tariff on Imports

 

Sioux Falls, SD (December 9, 2006) – The American Coalition for Ethanol (ACE), a national grassroots trade association for the ethanol industry, today praised the United States Congress for voting to stand behind domestic ethanol production and extend the secondary tariff on imported ethanol.  The Omnibus Tax bill passed December 8 included a provision to extend the secondary tariff offset for ethanol through January 1, 2009.

“Congress has delivered a clear and powerful message that it is in the best interest of the United States to continue supporting the domestic ethanol industry,” said Brian Jennings, ACE Executive Vice President. “We are extraordinarily grateful for the bipartisan leadership which accomplished the extension of the tariff offset to January 1, 2009. This important action helps pave the way for continued growth and investment in rural communities and clean, burning, homegrown, renewable fuel.”

A secondary tariff of 54 cents per gallon has been in place for ethanol imports, a policy designed to offset the 51 cent per gallon blender’s credit that is applied to ethanol no matter its country of origin. Removing the tariff offset or not renewing it when it was set to expire on October 1, 2007, as some had suggested, would have had dire consequences for the U.S. ethanol industry.

“Removing this tariff offset would have paved the way for U.S. dollars to be wired to Brazil, with American taxpayers subsidizing already-subsidized foreign ethanol,” Jennings added. “In addition, abandoning the tariff would indicate to lenders and investors that the U.S. is abandoning its commitment to a domestic ethanol industry. Such a move would have sharply curtailed the growth of an American renewable fuels industry that has the potential for enormous benefits to the nation’s economy, environment, and energy security.” 

In addition to the tariff extension, the tax bill included a new incentive for ethanol plants which utilize cellulosic feedstocks. New cellulosic ethanol facilities placed into service prior to January 1, 2013 will receive a provision for a 50 percent accelerated depreciation allowance.
The American Coalition for Ethanol is a grassroots trade association for the U.S. ethanol industry with more than 1400 members nationwide. For more information, visit www.ethanol.org.
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The American Coalition for Ethanol (ACE) is the grassroots voice of the U.S. ethanol industry, a national trade association for the ethanol industry with more than 1,400 members across 47 states, including farmers, ethanol producers, commodity organizations, businesses supplying goods and services to the ethanol industry, rural electric cooperatives, and individuals supportive of increased production and use of ethanol. For more information about ethanol or ACE, visit www.ethanol.org or call (605) 334-3381.