A broad coalition of companies and organizations have signed on to a letter asking Congressional tax writers to fix a program intended to promote the installation of fuel pumps that dispense mid- and high-level ethanol blends.
Growth Energy CEO Tom Buis sent the letter to the chairmen and ranking members of the Senate Finance Committee and the House Ways and Means Committee, along with the support of 152 companies and organizations, from ethanol plants to public policy advocates. The coalition includes ethanol and clean air organizations, state and national agricultural groups, petroleum marketers, and manufacturing companies.
The letter requests that Congress adopt a technical amendment that would direct the Internal Revenue Service to allow petroleum retailers to receive tax credits up to $50,000, or 50 percent of the total cost of installing alternative fuel dispensing systems, such as ethanol blender pumps. An earlier IRS decision left retailers unable to take the full tax credit.
“When Congress passed the tax credit, it was to ensure support for installing pumps that carry renewable, sustainable fuels like ethanol. But this IRS interpretation is blocking petroleum retailers from obtaining the full amount they are due, as intended by Congress,” Buis said. “Today we have the support of 152 separate groups and organizations from around the country, stating they agree with Growth Energy that Congress should fix the tax credit so IRS will administer the tax credit as intended.”
Read the letter here.