So, the folks at Kiplinger got out their crystal balls and they think that "the biofuel industry will clearly come up with the aces." These aces will likely include:
- A new Renewable Fuel Standard (RFS) of 35 billion gallons -- roughly 20% of the estimated U.S. motor vehicle fuels market -- by 2022.
- An additional 50¢-a-gallon federal tax credit for cellulosic ethanol, made from switchgrass, sawdust, farm waste or other lignin sources ... on top of the current 51¢-a-gallon credit for all ethanol.
- A new $1.10-a-gallon tax credit for biobutanol made from cellulosic sources will also get the nod.
A biobutanol tax boost would certainly get some of our readers excited and that extra 50 cents per gallon benefit for cellulosic seems to me to be the most forward-thinking of all these possibilities. It's a safe bet that we see a further jump in Toyota hybrid sales if there was some extra tax benefit to buying one now that most of the tax help has been reduced.
[Source: Kiplinger / Jim Ostroff]