WASHINGTON, D.C. – The American Bakers Association (ABA) and 89 other groups urged Congressional leadership to let the refundable Volumetric Ethanol Excise Tax Credit (VEETC) expire and to resist calls for spending on infrastructure for conventional biofuels. VEETC is a 45-cent-per-gallon federal tax credit for fuel blenders that purchase and blend ethanol with gasoline. Started in the 1970s, the program provides federal support to the domestic ethanol industry.
“Congress should not continue subsidizing gasoline refiners for something that they are already required to do by the Renewable Fuels Standard” said Robb MacKie, ABA president and CEO. "After thirty years of government subsidies and mandates it is time for ethanol to leave the nest and fly on its own."
“While many factors play into commodity price volatility, taking food crop acreage and turning it into fuel crop acreage may lead to tighter food supplies, higher grocery bills for Americans, and a dependence for food commodities from foreign countries – a potential serious food security concern,” said Rasma Zvaners, ABA policy director.
About the American Bakers Association:
The American Bakers Association (ABA) is the Washington D.C.-based voice of the wholesale baking industry. Since 1897, ABA has represented the interests of bakers before the U.S. Congress, federal agencies, and international regulatory authorities. ABA advocates on behalf of more than 700 baking facilities and baking company suppliers. ABA members produce bread, rolls, crackers, bagels, sweet goods, tortillas and many other wholesome, nutritious, baked products for America’s families. The baking industry generates more than $70 billion in economic activity annually and employs close to half a million highly skilled people.
Source: The American Bakers Association