CHAPTER THIRTEEN
Ethanol
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Exhibit 13-10
| Year | Percent of Corn Used | Corn price (dollars per bushel) |
Event |
|---|---|---|---|
| 1978 | Energy Tax Act of 1978 exempted 10 percent ethanol blends from the federal excise tax | ||
| 1980 | 0.5% | $3.11 | Crude Windfall Tax Act of 1980 extended the 40 cent per gallon tax credit |
| 1981 | 1.1% | $2.50 | |
| 1982 | 1.7% | $2.55 | |
| 1983 | 3.8% | $3.21 | |
| 1984 | 3.0% | $2.63 | Tax Reform Act of 1984 raised the tax credit for ethanol to 60 cents per gallon |
| 1985 | 3.1% | $2.23 | |
| 1986 | 3.5% | $1.50 | |
| 1987 | 3.9% | $1.94 | |
| 1988 | 5.8% | $2.54 | |
| 1989 | 4.3% | $2.36 | |
| 1990 | 4.4% | $2.28 | Omnibus Budget Reconciliation Act of 1990 lowered the subsidy for ethanol to 54 cents per gallon |
| 1991 | 5.3% | $2.37 | |
| 1992 | 4.5% | $2.07 | |
| 1993 | 7.2% | $2.50 | |
| 1994 | 5.3% | $2.26 | |
| 1995 | 5.3% | $3.24 | |
| 1996 | 4.6% | $2.71 | |
| 1997 | 5.2% | $2.43 | |
| 1998 | 5.4% | $1.94 | Transportation Efficiency Act of the 21st Century lowered the income tax credit for ethanol use to 51 cents per gallon by 2005 |
| 1999 | 6.0% | $1.82 | |
| 2000 | 6.3% | $1.85 | |
| 2001 | 7.4% | $1.97 | |
| 2002 | 11.1% | $2.32 | |
| 2003 | 11.6% | $2.42 | |
| 2004 | 11.2% | $2.06 | |
| 2005 | 14.4% | $2.00 | Energy Policy Act of 2005 established the Renewable Fuel Standard |
| 2006 | 20.1% | $3.04 | |
| 2007 | 24.5% | $4.00 |
Sources: U.S. Department of Agriculture–Economic Research Service and U.S. Energy Information Administration.