Farm Industry News Blog

House bill proposes to repeal VEETC, ethanol tariff

U.S. House Representatives Wally Herger (R-CA) and Joseph Crowley (D-NY) have introduced the Ethanol Subsidy Repeal Act, which would immediately repeal the Volumetric Ethanol Excise Tax Credit (VEETC) and the tariff on imported ethanol.

 

A week after the Senate passed an amendment to repeal ethanol tax incentives, the House will now consider a similar bill. Representatives Wally Herger (R-CA) and Joseph Crowley (D-NY) have introduced the Ethanol Subsidy Repeal Act, which would immediately repeal the Volumetric Ethanol Excise Tax Credit (VEETC) and the tariff on imported ethanol.

 

In 2010, an Iowa State University study conducted by Bruce Babcock, professor of economics and director of ISU’s Center for Agricultural and Rural Development, concluded there would be no major loss of jobs or major decrease in ethanol production if both industry supports were eliminated. In a short interview with Farm Industry News today, Babcock said that ethanol production would likely drop just four percent and corn prices would drop about seven percent if the supports were eliminated.

 

Asked if fuel blenders would use more imported ethanol if the tariff were removed, Babcock said, “No, Brazilians can’t currently meet their own demand.”

 

In a statement, Rep. Herger said, “The Government Accountability Office and the Congressional Budget Office have concluded that the ethanol tax credit is both wasteful and duplicative.”

 

Discuss this Blog Entry 5

on Jan 15, 2014

Representatives Wally Herger (R-CA) and Joseph Crowley (D-NY) have introduced the Ethanol Subsidy Repeal Act, which would immediately repeal the Volumetric Ethanol Excise Tax Credit (VEETC) and the tariff on imported ethanol Nick

on Jul 12, 2014

In a short interview with Farm Industry News today, Babcock said that ethanol production would likely drop just four percent and corn prices would drop about seven percent if the supports were eliminated http://advanpro.ca/chimney-sweeping-or-cleaning/

on Jul 22, 2014

The government needs to understand the importance of our ethanol. Rather than going for war in the middle and steal their oil. We need to understand the importance of ethanol. we would have to rely on Ethanol as our fuel rather than traditional oil simply because the price of the traditional one is skyrocketing and we would have to rely on it until we reach the full capacity of solar technology!
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on Sep 16, 2014

concluded there would be no major loss of jobs or major decrease in ethanol production if both industry supports were eliminated
what that mean? imay be can give me some explanation
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on Sep 30, 2014

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