The Senate voted on March 11 to extend the ethanol tax incentive through 2007 as part of the Senate's ISTEA, or Highway Reauthorization Bill, (S.1173). By a vote of 7l-26, the Senate defeated an amendment offered by Senator John McCain to delete the
extension from the bill. The extension was added during
Finance Committee consideration of the legislation
by Senators Chuck Grassley and Carol Moseley-Braun.
The provision mirrors the extension passed by the Senate
last summer as part
of the balanced budget agreement. It extends the ethanol tax
incentive through 2007, with modest reductions to 5.3¢ in
2001, 5.2¢ in 2003, and 5.1¢ in 2005.
Attention now turns to the House of Representatives, which has yet to report its ISTEA legislation out of the transportation committee. H.R. 2489, legislation introduced by Illinois Congressman Ray LaHood, would also extend the tax incentive through 2007, and currently has 60 cosponsors.
