Today, the Senate voted to eliminate $5 billion in support for the ethanol industry.In a 73-27 vote, the Senate approved the amendment to end the 45-cent-a-gallon subsidy. The subsidy is in the form of tax credits to refiners who use ethanol. The measure will now be added to a bill renewing a federal economic development program.
The White House also issued a statement saying it was against a full repeal of ethanol subsidies, indicating it could use its veto power if the amendment continued to advance in Congress.
These tax breaks have long been supported as a way to reduce oil imports. Critics say ethanol subsidies are no longer needed for an industry that is already supported by a mandate from Congress that requires refiners to blend 36 billion gallons of biofuel into auto fuel by 2022. They say it drives up corn prices, mainly for animal feed.
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Posted: 6/16/11
