Legislation Introduced to Expand Ethanol, Biodiesel Credit

[RenewableEnergyAccess.com] U.S Congressman Steve King (R-IA) introducing H.R. 36, legislation that would improve the existing small ethanol producer tax credit. King represents Iowa’s Fifth District covering the western part of the state. King introduced legislation that would change the definition of a “small” ethanol producer from 30 million gallons to 60 million gallons, an adjustment, which, according to the American Coalition for Ethanol (ACE), more accurately reflects modern ethanol facilities. Small ethanol producers are currently eligible for a tax credit of 10 cents per gallon up to 15 million gallons of production annually. The credit is capped at $1.5 million per year per producer. As the technology continually improves, ethanol plants are built with increasingly larger capacities. Most new-generation ethanol plants are designed to produce at least 40 million or 50 million gallons annually, so the existing definition limits many producers from benefiting, according to ACE. King’s legislation would also extend a new small producer credit to the biodiesel industry.
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