Ethanol Highway Trust Fund provisions pass

Pit & Quarry, Nov, 2004

The new export tax bill contains significant corporate tax incentives, says the National Stone, Sand and Gravel Association. Most significantly, H.R. 4520, the FSC/ETI (foreign sales corporation/extraterritorial income tax regime legislation) includes major proposals to increase the level of the Highway Trust Fund (HTF). These volumetric ethanol sections, known as VEETC, will increase the HTF by as much as $3 billion per year, says the National Stone, Sand and Gravel Association.

Ethanol will now be taxed at the same rate as gasoline, 18.4 cents per gallon, and the full amount will be remitted to the HTF. This provision is augmented by the inclusion of the 2.5 cents of the ethanol motor fuel tax that currently goes to the U.S. Treasury for deficit reduction. The 2.5 cents per gallon will also be remitted to the HTF.