End of Ethanol Tax Credit May Impact Gas Prices, Wisconsin's Economy
Contact: Joshua Morby - 414.344.1733
MILWAUKEE – The Volumetric Ethanol Excise Tax Credit (VEETC) program aimed at supporting domestic ethanol production ended on Dec, 31, 2011, possibly resulting in higher gas prices for consumers. The discontinuation of VEETC could have an impact on Wisconsin’s economy, home to nine ethanol production facilities, and countless corn growers.
“With Wisconsin’s ethanol plants generating $1 billion of economic activity, the end of the federal tax credits will impact local corn growers, producers and consumers in Wisconsin,” says Joshua Morby, executive director of the Wisconsin Bio Industry Alliance. “However, the ethanol industry in Wisconsin is strong and will continue producing a competitive alternative to fossil fuels.”
In June 2011, Congress voted to discontinue the VEETC program which gave ethanol blenders a 46-cent tax credit for every gallon produced. The end of VEETC, which saves consumers an estimated 5 cents per gallon at the pump, is likely to result in increased gas prices in 2012.
“The unfortunate decision to end VEETC will ultimately hurt consumers in the end,” says Morby. “Our focus must remain on supporting locally produced fuel that will lead to lower fuel costs for consumers, many of whom are struggling in our current economy.”
While tax credits on corn-based ethanol have expired, Congress has yet to make a decision on the future of tax incentive programs for ethanol derived from switch grass and trees, set to expire at the end of 2012. Biofuel supporters are actively advocating for the extension of these tax credits.
The Wisconsin Bio Industry Alliance is a diverse group of businesses, environmental groups, and statewide and local organizations that have come together to build both public and legislative awareness of the Bio Industry in Wisconsin.
For more information about the Alliance, or to find out how to join, please visit our website: http://www.wisconsinbioindustry.com.
- 30 -
Share This
