Subsidies for corn ethanol also litter the tax code – including tax breaks for biodiesel and blender pumps which dispense higher blends of ethanol– in addition to Department of Energy programs and other subsidies scattered throughout the federal government such as the Renewable Fuel Standard (RFS) mandate for the use of corn ethanol administered by the Environmental Protection Agency (EPA). Late last year, Congress passed a tax extenders package that once again extended the Alternative Fuel Vehicle Refueling Property Credit, which provides a 30 percent tax break for gasoline stations or other facilities installing biodiesel or 85 percent ethanol (E85) blender pumps. The credit received a one-year retroactive extension for calendar year 2014. While Congress has signaled an intent to take a different approach than routinely extending this package of tax breaks each year, time will tell if any wasteful tax credits are ended later this year.
The mature corn ethanol industry should no longer receive taxpayer support, whether through infrastructure subsidies for ethanol blender pumps in the tax code or production subsidies in the farm bill’s energy title. Given the nation’s current fiscal health, these subsidies are more egregious than ever.
Other Federal Supports for Corn Ethanol
In addition to the numerous special-interest supports corn ethanol has received over the years, including tax breaks, an import tariff, and infrastructure subsidies, a federal production mandate - the RFS - also heavily benefits corn ethanol. The maze of historic subsidies for corn ethanol has allowed the federal government to pick winners and losers, distort energy and agriculture markets, and contributed to expansion and overproduction of corn and ethanol in the industry.
Now add in that some states still subsidize the stuff too.
What about the federally mandate that requires that a certain percentage had to be ethanol laced? That's a back door subsidy.
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Today's Featured Article - Tractor Profile: Oliver 70 Row Crop - by Staff. The Oliver 70 was part of the "Fleetline Series" and was manufacturered from 1937 to 1948. The row-crop configuration could have either dual or single front wheels. The Oliver 70 was also offered in the standard, orchard and industrial configurations. The tractors were sold in Canada. An early advertisement states "Power when you want it - power when you need it - power to help put in crops when field conditions are right and time and help are limited. That's the power you'll find in an Oliv
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