[Congressional Record Volume 141, Number 146 (Tuesday, September 19, 1995)]
[Extensions of Remarks]
[Page E1801]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    LEGISLATION AMENDING THE INTERNAL REVENUE CODE RELATING TO THE 
EXPIRATION DATE FOR REFUNDING OF EXCISE TAXES ON GASOLINE BLENDED WITH 
                                ETHANOL

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                            HON. TIM JOHNSON

                            of south dakota

                    in the house of representatives

                      Tuesday, September 19, 1995

  Mr. JOHNSON of South Dakota. Mr. Speaker, I am pleased today to 
introduce legislation that would amend a technical error in the 
expiration date for refunds of excise tax on gasoline blended with 
alcohol fuels.
  Although the exemption from the excise tax for alcohol fuels clearly 
does not expire until September 30, 2000, the provision in Internal 
Revenue Code allowing businesses who routinely blend alcohol with 
gasoline and other fuels expires on September 30, 1995. Businesses 
still qualify for refunds for the excise tax paid, but the expiration 
of the provision for routine refunding of the excise tax paid requires 
Herculean efforts on the part of blenders and likely will cause some to 
quit blending alcohol fuel altogether. Extending the refund to coincide 
with the expiration dates for the exemption from excise tax is fair and 
budget neutral, as businesses using this refund procedure clearly do 
not owe the tax.
  Failing to extend the expiration of this refund will be negative for 
the environment, negative for the truly American industry of ethanol 
production, and negative for America's farmers as a significant market 
for grain will be reduced.
  Mr. Speaker, I am certain that you and the rest of my colleagues 
would agree that it is good policy to fix technical errors in Internal 
Revenue Code. The alternative is the policy of unintended consequences. 
This serves no public interest. I ask you to join me in making this 
technical correction to the Federal Tax Code.

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