Today, Rep. Cindy Axne (IA-03) introduced bipartisan, bicameral legislation to expand the use of low-carbon renewable fuels and reduce greenhouse gas emissions by creating a new tax incentive for fuel with higher blends of ethanol.
The Low Carbon Biofuel Credit Act, which was introduced in the House today with Rep. Adrian Smith (NE-03), would create a tax credit for each gallon of fuel containing 15 percent or greater ethanol content (E15).
“Our shared goals of reducing greenhouse gas emissions and supporting our farmers and producers don’t have to be in conflict if we invest in solutions that can do both,” said Rep. Axne. “Ethanol cuts carbon emissions by upwards of 61% compared to regular fossil fuels, and expanding use of higher blends like E15 and higher will create more opportunity for Iowa’s rural communities while reducing the pollutants we’re putting in our air. This commonsense, bipartisan proposal will make the investments we need to ensure clean renewable fuels can be used from coast to coast.”
The bill would allow an ethanol blender or fuel retailer to claim a 5 cent tax credit for each gallon of E15 blended or sold and a 10 cent tax credit for each gallon greater than E15 blended or sold.
This legislation would also allow the credit to be fully refundable and transferable for small retailers.
Background:
As a co-chair of the House Biofuels Caucus, Rep. Axne has been a strong and unwavering advocate for Iowa’s biofuels producers and farmers since coming to Congress.
Earlier this year, Rep. Axne led bipartisan legislation with Rep. Mike Kelly (PA-16) to extend the biodiesel tax credit.
Axne is also the lead sponsor of the Renewable Fuels Infrastructure Investment and Market Expansion Act, which would provide infrastructure grants for fuel retailers to expand the use of E-15, as well as ensure the EPA repeals E-15 labeling requirements that keep drivers from utilizing the cleaner fuel.
Last week, Rep. Axne continued her push to see biofuels infrastructure investments included in discussions about a bipartisan infrastructure package in a letter to House and Senate leadership.
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