The American Meat Institute has joined 103 organizations from multiple sectors in urging Congress to allow the refundable Volumetric Ethanol Excise Tax Credit (VEETC) to end and to resist calls for federal spending on infrastructure for conventional biofuels. The tax credit is set to expire on Dec. 31.
“Congress has the opportunity to end the $6 billion a year subsidy to gasoline refiners who blend corn ethanol into gasoline,” states a letter sent by the coalition to the House Ways and Means, House Energy and Commerce and Senate Finance committees, which have jurisdiction over the matter. “At a time of spiraling deficits, we do not believe Congress should continue subsidizing gasoline refiners for something that they are already required to do by the Renewable Fuels Standard.”
The letter noted that experts like the Congressional Budget Office and the Government Accountability Office have concluded that the subsidy is unnecessary, and leading economists agree that ending it would have little impact on ethanol production, prices or jobs.
“We urge you to let VEETC expire this year and resist calls for spending on infrastructure for conventional biofuels. As our country moves to reduce our budget deficit, it would be irresponsible to commit to new tax incentives or additional spending that continue to subsidize corn ethanol,” the letter concluded.
Read the full letter.