CBO: Using Biofuel Tax Credits to Achieve Energy and Environmental Policy Goals

Using Biofuel Tax Credits to Achieve Energy and Environmental Policy Goals, July 2010

  • “Roughly 11 billion gallons of biofuels were produced and sold in the United States in 2009, and ethanol produced from corn accounted for nearly all (about 10.8 billion gallons) of that total. Blenders of transportation fuels receive a tax credit of 45 cents for each gallon of ethanol (regardless of the feedstock, or raw material) that is combined with gasoline and sold. Although the credit is provided to blenders, most of it ultimately flows to producers of ethanol and to the farmers who grow the corn—in the form of higher prices received for their products. Most of the rest of the biofuel sold in the United States consists of biodiesel, which is made largely from soybean oil but is also produced from animal fats, recycled plant oils, and other feedstocks.”
    • LinkedIn
    Posted in: E-Government, Government Documents
    ➤