Washington Could Determine Ethanol’s Indiana Future
(Chicago Tribune/AP) A decision by Congress on whether to extend or gradually phase out a tax credit to oil companies and refiners to blend ethanol with gasoline could make or break some of Indiana’s 12 ethanol plants.
A study by a Delaware consulting firm says Indiana could lose thousands of jobs if the 45-cent-per-gallon tax credit is allowed to expire. Currently, the state’s ethanol plants employ about 500 people statewide, but the consultant, Entrix, says the losses would also affect farmers, truckers and suppliers.
Indiana’s $1.3 billion ethanol industry has the capacity to produce 938 million gallons, according to the Indiana State Department of Agriculture. Entrix and the Renewable Fuels Association estimate the credit’s lapse could reduce U.S. ethanol production by one-third, or 4 billion gallons a year, the Indianapolis Business Journal reported. READ MORE