After Three Decades, Tax Credit for Ethanol Expires

[alp227]

A federal tax credit for ethanol expired on Saturday, ending an era in which the federal government provided more than $20 billion in subsidies for use of the product.

The tax break, created more than 30 years ago, had long seemed untouchable. But in the last year, during which Congress was preoccupied with deficits and debt, it became a symbol of corporate welfare. Fiscal conservatives joined liberal environmentalists to kill it, with help from a diverse coalition of outside groups.

In the United States, most ethanol is produced from corn. The demise of the subsidy is all the more remarkable because it comes at the peak of the political season in Iowa, where corn is king.

“We are in a fairly prosperous period for agriculture,” said Dean C. Taylor, a former president of the Iowa Corn Growers Association. “Agriculture has not been as much of a touchstone for presidential candidates this time around.”

full: http://www.nytimes.com/2012/01/02/business/energy-environment/after-three-decades-federal-tax-credit-for-ethanol-expires.html

[Mister Ed]

1. Thank goodness.

It takes way, way more fossil fuel to grow, harvest, and refine corn-derived ethanol than is saved by burning it. As the article outlines, this has just been a way for politicians to buy favor at taxpayer expense. If only that $20 billion could have gone toward developing other, better forms of renewable energy instead.

[tropicanarose]

6. I completely agree. I don't understand WHY we haven't made any real progress on the energy front.

[ut oh]

10. I do...

it's about too many different industries having an interest in NOT exploring alternative energy.

It's the same reason we haven't made progress in just about every other progressive issue as well....

Corporate Money + Lobbyists + Money Hungry Politicians = Fucked Americans

[meow2u3]

2. Good. We can use the corn to feed people and farm animals instead of burning it up

I noticed that gas jumped 10 cents a gallon overnight yesterday. Now I see why.

The fact the the ethanol tax credit expired is hitting us at the pump. Just go to your nearest gas station and you should see for yourself. Let's hope the pain is relieved at the grocery store.

[Thaddeus Kosciuszko]

3. "Fiscal conservatives joined liberal environmentalists to kill it"

When non-establishment types to work together, they can take on the establishment.

[sendero]

4. Ethanol added to gasoline..

.. is a total waste of time. I found out accidentally when I noticed that gas I bought in Oklahoma gave me about 5-7% more miles per gallon than Texas gas. Ok gas doesn't have ethanol.

So basically, for every gallon of ethanol you buy, you are paying as much as gasoline and getting about half the fuel value.

I haven't examined the other arguments about the fuel cost to create ethanol compared to its fuel value, but I would not be surprised to find the claims that it costs more energy to produce than it contains to be true.

Were "environmentalists" for adding ethanol to gasoline way back when?

[hughee99]

14. Al Gore was (back then). n/t

[sendero]

5. Now....

..... if we could just end the 10% mandate.

[Lone_Star_Dem]

7. Small step in the right direction.

Food is for providing energy to living creatures, not machines.

This was never cost effective nor productive. It was a handout plain and simple.

[Gringostan]

8. Finally

Finally; hemp would be a much better alternative.

[RC]

9. You can buy real gasoline in North Dakota.

My car (2004 Chevy model) got around 24 miles per gallon around town.
I moved to Kansas City. Both Missouri and Kansas sell ethanol mandated by law. My millage dropped to around 19/20 MPG.
I finally found a place in Independence that sells real gasoline. My mileage is back up to around 24 MPG again. It is premium and it costs a bit more, but my car has a little more get-up-and-go again and it is longer between fill ups. (I normally keep track of my gas mileage, so I know for sure.)

[christx30]

11. Too bad

you can't just hop on the internet and have it shipped down to you like any other product that you can't get in your area.
But hopefully we can get rid of the ethanol. It's bad for the planet, it's bad for our cars, it's bad for our wallets.

With the price of gas getting where it is, I'm glad I don't even own a car any more.

[robinlynne]

12. and of course Jeb Bush was in charge of the ethanol producers' associaition....

[PuffedMica]

13. Turning food into motor fuel is stupid. n/t