Ethanol Blog
Todd Neeley DTN Staff Reporter

Thursday 11/05/09

US House Seeks to end Biofuels Paper tax Breaks

The U.S. House of Representatives Wednesday said they would close a loophole that lets paper companies claim a tax credit for making biofuel that is already a byproduct of paper production, according to Reuters.

Democrats on the House Ways and Means Committee propose to close one version of an alternative fuel credit in which companies can claim about a $1 credit per gallon for producing biofuel.

The credits are intended to spur development of biofuels and are being used by paper companies. Critics say so-called 'black liquor' -- a byproduct of paper production -- is blended with a small amount of diesel fuel to claim the credit.

(Reuters, Nov. 4, 2009)
(http://www.reuters.com/…)

Posted at 10:30AM CST 11/05/09
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