сряда, 13 юли 2011 г.

ND0711111

Title: Washington Report: Senate Considers VEETC Repeal
Description: NACS is working to ensure that any repeal of the credit does not negate existing supply contracts that assume the tax credit will remain in effect.
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Week in Review
Last week, a trio of senators reached a deal on ethanol subsidies and debt reduction and the White House reportedly supports the deal.

Under the agreement, the $2 billion that would otherwise be spent on subsidies would be divided: $1.3 billion for deficit reduction, $308 million for a production tax credit for cellulosic biofuel, $253 million for an alternative fueling infrastructure tax credit, and $107 million for a small-producer tax credit.

Sens. John Thune (R-SD), Amy Klobuchar (D-MN) and Dianne Feinstein (D-CA), who structured the agreement, must now work to gather support for the deal. Specific to gaining conservative support is winning over Sen. Tom Coburn (R-OK), whose amendment to repeal ethanol subsidies a couple weeks back won by a vote of 73-27. While that vote was viewed largely as symbolic, it demonstrated the Senate?s position of the issue.

At this time, senior Republican aides are skeptical that the Thune, Klobuchar and Feinstein deal will ultimately prevail.The biggest question remains: Which legislative vehicle will such a compromise go?

NACS has historically supported extension of the Volumetric Ethanol Excise Tax Credit (blenders? credit) since it has been necessary to keep ethanol economically viable in the market. In light of current momentum, NACS is working to ensure that any repeal of the credit does not negate existing supply contracts that assume the tax credit will remain in effect. To eliminate the credit midway through the year would increase the cost of goods sold, and generate substantial uncertainty in the market. In addition, NACS is advocating that repeal of the tax credit must be accompanied by repeal of the tariff on imported ethanol in order to offset any negative economic consequences that may follow repeal of the tax credit.

Week Ahead
With the clock ticking on the August 2 deadline, the White House is fully engaged in discussions related to the debt ceiling ? however, talks are now deadlocked. On Thursday last week, President Obama held a meeting with leaders from both parties to discuss the need to increase the debt ceiling. The president scheduled a discussion for yesterday, but after just 75 minutes the meeting adjourned. Speaker of the House John Boehner (R-OH) told the president that Republicans would not support the larger deficit-cutting plan that Obama proposed because it includes tax increases, reports The Washington Post.

Appearing on ?Fox News Sunday,? Senate Minority Leader Mitch McConnell (R-KY) called the president?s proposal ?a terrible idea? and ?a job killer? at a time when the unemployment rate is rising.

Other Stories

Content Subject: Government Relations
Formatted Article Date: July 11, 2011

really nice stories read and know

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