A bill designed to boost ethanol sales has cleared a committee in the Iowa House. Representative Ralph Klemme of LeMars says the bill gives an incentive to gas stations that sell lots of ethanol-blended fuel.If more than 60 percent of the gas sold at a station is ethanol, that station’s owner gets a two-and-a-half cent tax credit for every gallon sold over that 60 percent threshold.Klemme says the credit will hopefully be passed along to the consumer — in the form of cheaper ethanol at the pump.Klemme believes the marketplace will guarantee station owners will lower the price of ethanol if they get the credit.The bill cleared the House Ag committee on a 19 to one vote yesterday afternoon. The bill faces an uncertain future. Governor Vilsack supports a law that would require ethanol-only at Iowa gas pumps, but he has reservations about the tax credit proposal.
