Ethanol producers plead for small producer credit tax correction in legislation

By | October 01, 2002
Fifty current and future ethanol producers from 16 states sent a letter to the chairmen of the House and Senate tax writing committees urging them to include a correction to the small ethanol producer credit in the final version of pending energy legislation. The group, spearheaded by the Renewable Fuels Association, is working to allow farmer-owned ethanol plants that organize as cooperatives access to the program. As currently implemented, farmer cooperatives cannot take the credit. The ethanol producers wrote: "Under current law, small ethanol producers are allowed a 10-cents per gallon production income tax credit on up to 15 million gallons of production annually. The provision is generally available to all small ethanol producers except those organized as farmer cooperatives. Due to their structure, farmer cooperatives are not able to take the credit.