Let the VEETC Expire: Save Billions in Tax Dollars Better Spent on Non-Polluting Energy Technologies

Fact Sheet
July 01, 2010

The Volumetric Ethanol Excise Tax Credit (VEETC) is little more than a government kickback for big oil to buy and blend corn ethanol that they are already required to purchase under the Renewable Fuel Standard. Over the last five years, we’ve paid oil companies more than $20 billion to obey this law. And now Congress is considering a five-year VEETC extension -- costing U.S. taxpayers another $31 billion. Instead of massive giveaways to big oil companies and old corn ethanol plants, Congress should support emerging and more competitive energy technologies in non-polluting wind, solar, geothermal and advanced biofuels that create many more times the green jobs we need and far less pollution. NRDC urges Congress to stop giving billions to two mature, mainstream, and polluting industries: big oil and old corn ethanol. Congress should allow the VEETC to expire at the end of the year.