The Battle of The Corn Ethanol Tax Credits Begins...

The Battle of The Corn Ethanol Tax Credits Begins…

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In late March, Representative Earl Pomeroy introduced a bill that would extend the tax credits for corn ethanol by five years.  The cost of extending the tax credits for corn ethanol would be over $31 billion dollars, with practically no impact on ethanol production.

In fact, corn ethanol production is no longer contingent on the existence of tax credits and is actually dependent on the Renewable Fuels Standard.  And, the subsidy is not given and does not help farmers in anyway; in reality, it goes to the oil industry for blending the ethanol into petroleum.  In other words: we’re paying the oil industry to do what it’s already required to do by law resulting in billions in wasted taxpayer dollars.

Friends of the Earth and other groups, including environmental, hunger, food and budget hawks, opposed the extension of the corn ethanol tax credits in this bill.  

Group Press Release | Group Fact Sheet


Environmental groups are also weighing in on the wastefulness of the ethanol tax credits and wrote to both the House and the Senate opposing the extension of these credits.

House Letter | Senate Letter