Grassley Plans Bill to Tie Ethanol Tax Break to Oil, Group Says
U.S. Senator Charles Grassley, an Iowa Republican, plans to introduce legislation that would tie an ethanol tax break to the price of oil, said Matt Hartwig, a spokesman for the Renewable Fuels Association in Washington.
The measure, which Grassley may offer today, would convert the 45-cent credit into a “variable tax credit that would adjust based on the price of oil,” Hartwig said in an e-mail.
A group of Democratic and Republican senators yesterday introduced legislation to repeal the credit, which is estimated to cost $6 billion a year, and a tariff on ethanol imports.
The credit, which helps the corn ethanol industry, is set to expire this year.
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