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 - A Towny Goes Plowing - by Anthony West (UK). I live in an area renowned for its rural beauty. Small fields with hedgerows and trees are common place, as are small hamlets with village greens and the odd duck pond complete with swans. The center of any village once the shop is closed is the old tavern. Rustic places with cheerful names like "The Griffin" "Red Lion" or "The Plough and Harrow" are found dotted around the country lanes all over the place. The warm glow of yellowish light can be seen for quite some distance at dusk, and
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