GAO calls on Congress to re-examine tax credit for ethanol blenders

The Government Accountability Office is urging Congress to revise or phase out the 45-cent-per-gallon tax incentive for mixing corn-based ethanol with gasoline, saying such a measure may no longer be necessary for boosting production "because the domestic industry has matured." The GAO report, commissioned by Sens. Barbara Boxer, D-Calif., and Susan Collins, R-Maine, focused on the possible effects of increased biofuel production. The Renewable Fuels Association said eliminating the tax credit would be unfair to the sector while the U.S. government continues to provide support to the petroleum industry.

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Bloomberg · Star Tribune (Minneapolis-St. Paul, Minn.) · DomesticFuel.com

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