WASHINGTON, DC – Growth Energy, the coalition of U.S. ethanol supporters, is asking top Congressional tax writers to fix a program that is intended to promote the installation of pumps that dispense mid- and high-level ethanol blends, but which the IRS is allowing petroleum retailers to take only a partial tax credit.
In letters to the chairmen and ranking members of both the Senate Finance and House Ways and Means committees, Growth Energy CEO Tom Buis says the Alternative Fuel Vehicle Refueling Property Credit should allow fuel vendors to recapture up to $50,000, or 50 percent, of the total cost of installing alternative fuel dispensing systems (such as ethanol blender pumps). At issue, however, is an IRS interpretation that retailers are only allowed to take credit for a portion of the new pump – instead of the entire pump.
“The intention of the tax credit to ensure there’s some support for installing pumps that carry renewable, sustainable fuels like ethanol. But the interpretation of the IRS is blocking petroleum retailers from obtaining the full amount they are due under the tax credit, as intended by Congress,” Buis said. “Growth Energy’s position is that a simple technical correction would go a long way to clarifying the intent of Congress, and clear the way so that retailers can have the tax credits they’ve been promised to help build out the infrastructure we need to delivery alternative fuels like ethanol.”
The letter noted that earlier legislation had been introduced by Reps. Stephanie Herseth-Sandlin, D-S.D., and John Shimkus, R-Ill., to correct the IRS interpretation. In his letter, Buis suggests that the 2009 tax extenders package be the place to carry the technical correction Growth Energy is seeking.
About Growth Energy
Growth Energy is a group committed to the promise of agriculture and growing America’s economy through cleaner, greener energy. Growth Energy members recognize America needs a new ethanol approach. Through smart policy reform and a proactive grassroots campaign, Growth energy promotes reducing greenhouse gas emissions, expanding the use of ethanol in gasoline, decreasing our dependence on foreign oil, and creating American jobs at home. More information can be found at GrowthEnergy.org.