Coalition letter: Allow the Volumetric Ethanol Excise Tax Credit to Expire

Coalition letter: Allow the Volumetric Ethanol Excise Tax Credit to Expire

November 29, 2010

A coalition of political groups today urged Congress to scrap energy subsidies by allowing the subsidies to expire at the end of the year:

In particular, Congress has the opportunity to end the $6 billion a year subsidy to gasoline refiners who blend corn ethanol into gasoline. 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 latest call for ending such mandates follows an October letter to Congress by free market groups urging Congress to scrap the 45¢ per gallon Volumetric Ethanol Excise Tax Credit (VEETC) and the 54¢ per gallon tariff on imported ethanol.