Government Earns 400% ROI on Ethanol Blender’s Credit
by Mark (Corn Commentary) …The next issue can already be seen on the horizon and it can be seen clearly because it is not a “new” criticism. It is called the Volumetric Ethanol Excise Tax Credit (VEETC). This is the incentive put in place to encourage gasoline marketers to blend 10% ethanol in a gallon of gasoline. It is the carrot that got the entrenched oil industry to rethink their century old product mix and make it better.
Yes, you heard me right; the tax incentive goes to gasoline blenders, not the ethanol industry. Despite this, rest assured, the anti-ethanol cronies will scream ethanol subsidy when discussion about renewing VEETC begin in earnest. Regardless, VEETC is working and the facts speak for themselves. According to Bill McInturf, a Director at CFO Systems LLC in Omaha, NE the return on investment from the ethanol blender’s credit is 400%.
The Government’s 2008 $4.7 billion investment in the ethanol industry returned almost $20.0 billion in increased tax revenue and reduced farm program expenditures, leading Bill to say “This has to be one of the most financially successful government investments ever.” READ MORE
Related posts:
- House Approves Extension of Biodiesel Credit that Industry Calls Vital
- Closing Down $24 Billion Biofuels Tax Credit Loophole: a Good Idea (Here’s Why)
- U.S. Sen. Harkin Pushes for Extension of Biodiesel Blenders’ Tax Credit
- Novozymes Gets USD 28.4 Million Tax Credit to Advance Biofuels Production, Create Jobs
- Van Hollen Introduces Second Generation Biofuel Producer Tax Credit Act
