U.S. House Said to Consider Reducing Ethanol Subsidy
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The U.S. House Ways and Means Committee has proposed reducing the tax credit that helps support the ethanol industry by 20 percent to cut spending, according to two people familiar with the matter.
Refiners and blenders would receive 36 cents for every gallon of ethanol blended into gasoline, down from the 45 cents they currently pocket, said the people, who declined to be identified because the proposal hasn’t been made public. The tax credit expires this year and the committee is proposing to extend it a year.