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Fuel provisions in the Tax Relief bill

US President Barack Obama on Friday signed H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (“Middle Class Tax Relief Act of 2010”). The bill, among its other provisions, contains a number of provisions related to energy (Title VII, Subtitle A) and within that, provisions related to fuels.

Ethanol. The bill extends the Volumetric Ethanol Excise Tax Credit (VEETC) through 2011 at the current rate of $0.45/gallon US. The bill also extends through 2011 the existing $0.54/gallon, secondary tariff on imported ethanol and the related tariff ($0.227/gallon) tariff on ethyl tertiary-butyl ether (ETBE).

The bill also extends through 2011 the $0.10/gallon producer tax credit for small ethanol producers producing no more 60 million gallon of ethanol a year. The tax credit is applicable to only the first 15 million gallons of production for eligible producers.

Biodiesel and renewable diesel. The bill extends the $1/gallon US production tax credit for biodiesel and diesel fuel created from biomass, as well as the $0.10/gallon credit for small agri-biodiesel producers through 2011.

Alt fuel and alt fuel mixtures. The bill extends through 2011 the $0.50/gallon production tax credit for alternative liquid fuels derived from biomass, compressed or liquefied biogas, national gas and propane. The bill excludes black liquor (liquid fuel derived from a pulp or paper manufacturing process) from credit eligibility.

Alternative fuel vehicle refueling property. The measure extends the 30% investment tax credit for alternative vehicle refueling property for one year, through 2011.

Refined Coal. The bill extends through 2011 the placed-in-service deadline for qualifying refined coal facilities. As defined in Title 26 of the US Code (The Internal Revenue Code of 1986), refined coal means a fuel which is a liquid, gaseous or solid fuel produced from coal (including lignite) or high carbon fly ash, including such fuel used as a feedstock; and is sold with the reasonable expectation that it will be used to produce steam, resulting in a qualified emission reduction.

Suspension of Limitation on Percentage Depletion for Oil and Gas from Marginal Wells. The bill extends for one year the suspension on the taxable income limit for purposes of depleting a marginal oil or gas well.

Comments

ToppaTom

This is good;
for brevity, that is.

We can now simply refer to corn ethanol an EARMARK.

SJC

We should phase out subsidies for corn ethanol as cellulose and other forms for making alternate fuels come on line. We should help those other forms come on line as soon as possible.

HarveyD

USA can give all the tax credits it can afford and more but it has no international rights to impose import duties on the same product.

This is a very far cry from fair trade.

USA would go to war if anoher trading partner would do the same.

ToppaTom

Yes, and I do not think the USA can give all the tax credits it can afford, without running afoul of the WTO.

"USA would go to war if another trading partner would do the same."
How absurd;
we would never go to war over oil (again).

HarveyD

TT: Oil wars may not stop at two or three. With the latest 6.5% rise in oil consumption, USA's oil lobbies and Flower Parties will be very active in the near future. The 20+ M barrels/day required cannot be produced with local bio-mass. Converting NG, SG and coal to liquid fuels will be required if a third and subsequent Oil or Bio-mass Wars are to be avoided.

ToppaTom

What/who are Flower Parties?

Today's flower children have norphed into the likes of Van Jones, Pelosi and Reid.

I agree they may be generally against all forms of domestic liquid fuel production such as converting NG, SG and coal to liquid fuels.

You think that without these, we may have a third and subsequent Oil or Bio-mass Wars?

SJC

The RFS calls for more than 30 billion gallons of ethanol in 10 years, half of that coming from cellulose. If we pass the OFS we can have plenty of cars that can run E85 on the road and have an alternate fuels industry under way.

150 members of Congress from both major parties support the Open Fuels Standard. The U.S. automakers said that they will be ready and willing to make FFVs. This is a way to have MORE options and not less. It is a way we can have a domestic alternative fuels industry and import less oil.

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