KING CHAMPIONS ETHANOL PROVISION IN AMERICAN JOBS CREATION ACT OF 2004

October 8, 2004

Washington, D.C.— Iowa Congressman Steve King announced late Thursday that he successfully worked on the House side to secure provisions for Iowa farmers. Specifically, King’s legislation, H.R. 465, which provides a small ethanol producer tax credit, was included in the final Conference Report for the American Jobs Creation Act which successfully passed in the House of Representatives today.

“We need to spur economic development in rural Iowa,” King said. “Adding value to the commodities we have been producing for years keeps our wealth here in Iowa. Keeping our wealth here helps keep our children here too.”

Due to their structure, farmer cooperatives were not eligible for this credit without the King bill. King’s credit will incentivize farmers' involvement as small ethanol producers. Under current law, small ethanol producers are allowed ten cents per gallon for a production income tax credit on up to 15 million gallons of production annually. The credit is capped at $1.5 million annually per producer. The provision applies to all small ethanol producers except those organized as farmer cooperatives.

“I was pleased to work with Senator Grassley on this provision that will benefit Iowa farmers,” King said. “In Western Iowa, we need to add value as close to the corn stalk and soybean stem as we can, as many times as we can. This new wealth flows from our farms to our towns and cities, strengthening our rural economy.”