Senators: Ethanol credits are extended in tax deal

Refiners and gasoline blenders currently receive a 45 cent-per-gallon credit for each gallon of ethanol mixed in, an incentive ethanol producers call vital to ensuring a robust market for the fuel. It is scheduled to expire at the end of the year.

Sen. Dianne FeinsteinDianne FeinsteinCongress strikes deal on water bill with Flint aid Top Dem signals likely opposition to Sessions nomination Senator blasts GOP push for California drought language in water bill MORE (D-Calif.) — who is among the lawmakers battling the credits — also told reporters that the deal contains an extension. She believes it is at the 45-cent level but was uncertain about the duration.

“Ethanol tax credits — that’s a problem. As far as I know they are in and they should not be,” she told reporters.

Continuation of the incentives would be a victory for ethanol producers and farm-state lawmakers, who have been battling a left-right coalition of lawmakers and interest groups trying to kill the credits.

This post was updated at 12:09 p.m.