As the 109th Congress convened Tuesday, legislation was introduced to expand the small ethanol producer tax credit.

Rep. Steve King (R-Iowa) introduced a bill, H.R. 36, that makes it easier to qualify for the so-called "small ethanol producer tax credit," and also expands the tax credit to biodiesel producers.

"It's good to know that issues important to corn growers and rural America are on Congress' radar screen as the legislative work on Capitol Hill gets underway," said Leon Corzine, president of the National Corn Growers Association. "The issue of expanding the small ethanol producer tax credit is important because it was not included as part of the Volumetric Ethanol Excise Tax Credit provisions in the corporate tax bill that was enacted late last year."

Under current legislation, only small ethanol producers that generate less than 30 million gallons per year are eligible for a 10-cent-per-gallon tax credit for up to 15 million gallons of production annually. However, King's proposal would allow plants that produce up to 60 million gallons annually to use the tax credit. The credit is capped at $1.5 million per year per producer.

Source: Association Release