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E85 will be much more expensive than normal fuels without a new tax credit according to the coalition

The tax rebate on ethanol fuels is set to expire at the end of this year. This will vanquish the tax credit that allowed ethanol producers in the U.S. to export as much or more of the fuel to other countries than was used in American fuel tanks. Steven Rattner stated in a piece written for the NYT, “Because of the subsidy, ethanol became cheaper than gasoline, and so we sent 397 million gallons of ethanol overseas last year. America is simultaneously importing costly foreign oil and subsidizing the export of its equivalent.”
That exporting of ethanol is one of the reasons the tax break on ethanol is ending.
With the deadline looming for the tax credit, a coalition is forming to get federal tax law amended to allow E85 to get a tax cut. The new group will be called the Coalition for E85 and it is specific in that it isn't out to get the tax credit back for E10. The coalition will let that tax expire with no fight from its members, but it wants the E85 blend to gain a new tax cut or the coalition warns the days of E85 might be numbered.
The blenders that make E10 fuel that is in wide use, and is a mix of 10% ethanol and 90% unleaded are getting a 4.5-cent-per-gallon tax credit. E85 is getting a credit of 38.25 cents per gallon under the Volumetric Ethanol Excise Tax Credit or VEECT. This is the tax that expires in December.
What the coalition is seeking is a change that would allow the E85 blend to receive the Alternative Fuel Credit (AFC). E85 was excluded from the AFC originally to keep it from being able to qualify for both the VEECT and the AFC credits. With the VEETC being discontinued, the makers want E85 to now get the AFC credit to allow the E85 fuel to maintain closer price parity with normal fuels for consumers that drive Flexi Fuel Vehicles. Flexi Fuel Vehicles or FFVs are able to burn regular gasoline and E85.
The coalition is trying to raise $75,000 to hire a Washington lobby group to speak on its behalf.

Source: Platts

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RE: No thanks
By RU482 on 10/18/2011 2:32:48 PM , Rating: 2
this country will never elect a black president, silly

RE: No thanks
By coondini on 10/18/2011 3:22:48 PM , Rating: 1
Herman Cain is just an old white guy in black sheep's clothing.

RE: No thanks
By FITCamaro on 10/19/2011 7:43:04 AM , Rating: 3
I love how liberals say this because a black person dares to not be a drone and actually believes in capitalism and conservatism. Basically you idiots can't call him racist so you just disparage him every other way.

Saw the same thing when our wonderful representative Tim Scott was elected here in Charleston. Pretty sad really.

RE: No thanks
By Reclaimer77 on 10/19/2011 10:08:54 AM , Rating: 5
Herman Cain is just an old white guy in black sheep's clothing.

I'm disgusted that this comment gets a 5 on DT. It's just so wrong and offensive. Haven't we moved past this sort of thinking?

If I said something like "Obama's never lived in the hood and his mom was white, he's not black", Democrats would come out of the woodwork to call me racist and everything else. But these same people can make similar attacks on black Republicans. I just do NOT get it.

RE: No thanks
By Master Kenobi on 10/19/2011 8:44:22 PM , Rating: 2
Well they have a hard time against people like Colin Powell. Democrats could take pot shots at him but his track record is pretty solid. It's not any wonder the guy wants nothing to do with politics these days. Personally I'd like to see him run for the presidency, if nothing else then maybe a senate seat.

"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
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