Reminder: Ethanol Tax Credit Will Drop Next Year

摘要

The federal tax credit for ethanol blends falls from 5. lets to 4.5cts/gal for E10 blends on Jan. 1, thanks to changes made by Congress to the 2008 Farm Bill, warns the Petroleum Marketers Assn. of America. Under the bill, the 5 lcts/gal tax credit allowed for ethanol use is reinstated anytime IRS determines that ethanol production for the previous calendar year was below 7.5 billion gallons. IRS recently announced that production for 2008 is estimated to be 11.1 billion gallons. As a result, the tax credit rate is reduced to 45cts/gal, effective next year.