27 July 2010 02:30 [Source: ICIS news]
WASHINGTON (ICIS news)--The key House tax-writing committee on Monday proposed a 20% cut in the federal tax credit for corn-based ethanol, reducing the subsidy to 36 cents per gallon from its current 45 cents level.
House Ways and Means Committee Chairman Sander Levin (Democrat-Michigan) issued his 100-page discussion draft of a manufacturing and energy bill that includes a one-year extension to the end of 2011 - at the reduced rate - of the ethanol subsidy.
But the proposed bill would maintain, also for one year, the existing tariff of 54 cents per gallon on foreign ethanol, an import duty that limits US use of ?xml:namespace>
The measure also would reinstate the $1/gal tax credit for domestically produced biodiesel. That credit lapsed at the end of last year.
The US ethanol industry has lobbied hard for continuation of the 45 cents/gal tax credit, but many in Congress want the subsidy eliminated.
($1 = €0.77)
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