Senate rejects ethanol tax break repeal
June 15, 2011 | 11:59 PM | Filed in: Biofuels
The Senate Tuesday rejected a bill sponsored by Sen. Tom Coburn, R-Okla., to immediately repeal the ethanol tax break formally known as the Volumetric Ethanol Tax Credit.
The Senate voted 59-40 not to end debate on the measure; 60 votes were required to proceed to consider the underlying bill.
The National Corn Growers Association, the Renewable Fuels Association, Growth Energy and the National Farmers Union all issued news releases praising the Senate action, while Oxfam said its coalition of anti-ethanol groups believe they will eventually prevail.
Sen. Charles Grassley, R-Iowa, who voted against the Coburn bill, said it was “misguided and out of touch.”
“Jobs are scarce and gas prices are too high, and this tax increase would make both situations even worse,” Grassley said. “Energy tax policy ought to be reviewed, across the board, without ethanol being singled out. The review ought to include the tax incentives for all energy sources, including oil and gas provisions that have been permanent tax law for nearly 100 years.”
Sen. Jon Tester, D-Mont., said he was proud to have voted for the Coburn amendment on the grounds that subsidizing corn ethanol subsidies is inefficient. Tester said the Coburn measure would not have affected Montana’s biofuels producers, and that he favors making biofuels from cellulose and oilseeds.
The Senate voted 59-40 not to end debate on the measure; 60 votes were required to proceed to consider the underlying bill.
The National Corn Growers Association, the Renewable Fuels Association, Growth Energy and the National Farmers Union all issued news releases praising the Senate action, while Oxfam said its coalition of anti-ethanol groups believe they will eventually prevail.
Sen. Charles Grassley, R-Iowa, who voted against the Coburn bill, said it was “misguided and out of touch.”
“Jobs are scarce and gas prices are too high, and this tax increase would make both situations even worse,” Grassley said. “Energy tax policy ought to be reviewed, across the board, without ethanol being singled out. The review ought to include the tax incentives for all energy sources, including oil and gas provisions that have been permanent tax law for nearly 100 years.”
Sen. Jon Tester, D-Mont., said he was proud to have voted for the Coburn amendment on the grounds that subsidizing corn ethanol subsidies is inefficient. Tester said the Coburn measure would not have affected Montana’s biofuels producers, and that he favors making biofuels from cellulose and oilseeds.
