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April 8, 2010
|Nebraska Corn Growers 402.438.6459
Nebraska would lose more than 13,700 jobs should the Volumetric Ethanol Excise
Tax Credit (VEETC) not be renewed before it expires in December, the Nebraska
Corn Board said in a news release yesterday. The release was response to a study
released by the Renewable Fuels Association (RFA).
VEETC provides oil refiners and fuel blenders a 45-cent per gallon tax credit on
each gallon of ethanol they blend with gasoline. The credit provides an
important economic incentive to invest in equipment to blend and use ethanol,
which in turn supports growth and advancements in the sector, the Nebraska Corn
“VEETC is an important component of our renewable fuels program, and now is
certainly not the time to stunt the growth of biofuels or shock rural
communities with significant job losses,” said Jon Holzfaster, a director of the
Nebraska Corn Board and chair of the National Corn Growers Association ethanol
committee. Holzfaster is a corn and cattle producer from Paxton.
The study, conducted for RFA by ENTRIX, an economic consulting firm, concluded
that not renewing VEETC would cost the United States more than 112,000 jobs
because as much as 37 percent of the ethanol industry would shut down. Since
Nebraska is the second largest ethanol producing state, more than 12 percent of
those jobs would be lost in and around mostly rural Nebraska communities that
support an ethanol facility.
Some job losses would come from those directly involved in ethanol production,
while other job losses would be caused by a reduction of dollars spent by
ethanol producers – dollars that would normally flow throughout all sectors of
“There is legislation in front of Congress right now that will extend VEETC
beyond December 31, when it is set to expire. It is important that Congress act
on this legislation to keep renewable fuels on track,” he said.
In Nebraska, 20 ethanol plants are located in the third Congressional district,
more than any other district in the U.S., and another four are located in the
first district. “Those who support ethanol and rural economic development need
to make sure their representatives understand the importance of VEETC,”
Holzfaster said. “We’ll need their support to ensure it is renewed as quickly as
On a national scale, the research shows that not renewing VEETC would eliminate
some $2.7 billion in state and local tax revenues and another $2.4 billion in
federal tax revenue, reduce household income by $4.2 billion and reduce the
gross domestic product by $16.9 billion, further eroding the economic output of
the U.S. manufacturing sector.