WASHINGTON, DC – Growth Energy, the coalition of U.S. ethanol supporters, issued the following statement after Reps. Earl Pomeroy, D-N.D., and John Shimkus, R-Ill., Introduced bipartisan legislation that would extend the Volumetric Ethanol Excise Tax Credit (VEETC) and ethanol tariff for five years and the cellulosic tax credit for three years, all at current levels:
“Extension of these measures is a surefire way to create jobs, improve our nation’s environment and strengthen our national security. If we let the tariff expire, it would drain both hundreds of thousands of jobs and billions of dollars right out of our economy,” Tom Buis, CEO of Growth Energy, said.
Buis cited a University of Missouri study which found that allowing the tariff to lapse would force job losses of 39,506 in the first year, 115,624 in the second year, and 161,384 in the third year – with job losses continuing year-to-year and never regaining. The decline in economic activity was calculated at $9.2 billion in the first year, $26.4 billion in the second year, and $36,651 in the third year.
“Without the tariff, American taxpayers will be allowing foreign-subsidized ethanol to subvert American companies and American workers. And it would do nothing to end our dependence on foreign energy. It would replace our nation’s addiction to foreign oil with dependence on foreign ethanol – and not make our nation one bit more energy secure.
“We endorse extending the tax credits because the net effect of eliminating this tax credit or any other tax credit is to raise taxes on motorists, who currently benefit from lower fuel prices as a result of the VEETC. It does not make sense to raise taxes on Americans right now — given that 10 percent of the population is already unemployed and still reeling from the recession,” Buis said.
Buis cited preliminary results of a new Growth Energy-commissioned study on the impact of the VEETC shows that the U.S. taxpayer sees a $19.2 billion annual return for investing in the tax credit. The study, conducted by the Windmill Group, found that a $5.8 billion VEETC investment created $17 billion in federal tax revenue and saved $8 billion from farm program payments, as well as contributing $92 billion to the national economy.
“We commend Congressman Pomeroy and Congressman Shimkus for their efforts to ensure a cleaner, more secure energy future for America. We are pleased to have been able to work with them on this important legislation and we will continue to support this bill through the legislative process,” Buis said.
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.