By Ben Geman - 12/13/10 07:17 PM EST
But Feinstein’s plan would add another $1 billion worth of credits to the program that was launched in the 2009 stimulus law. The stimulus provided $2.3 billion in clean energy manufacturing credits, but demand quickly outstripped that cap, leaving many companies out in the cold.
Here’s a statement from Feinstein on her plan:
“I intend to file an amendment to the tax bill today that would lower the ethanol subsidy and tariff to 36 cents-per-gallon.
“Currently, the federal government intervenes in the ethanol industry in three ways: requiring ethanol be blended in gasoline, providing a substantial subsidy and slapping tariffs on foreign ethanol imports, making us more dependent on foreign oil. This is bad policy and must be fixed.
“This amendment would reduce the tax credit from 45-cent-per-gallon tax credit to 36 cents-per-gallon, reduce the 10-cent-per-gallon small producer tax credit to 8-cents-per-gallon, and reduce the 54-cent-per-gallon tariff on imported ethanol to 36-cents-per-gallon. Taxpayer savings of approximately $2 billion would be used to reduce the deficit and extend the Advanced Manufacturing Tax Credit.”