The biggest subsidy is the 51-cent-per-gallon tax credit that refiners receive for using ethanol.
U.S. subsidies and tax breaks for the ethanol industry have risen to as much as $6.8 billion this year, according to Global Subsidies Initiative. An ethanol industry spokesman commented that the study does not include savings to the government when ethanol demand leads to lower crop subsidies and provides benefits to local economies. The study considers both state and federal incentives and indicates that there are less expensive ways to reduce fossil fuels than requiring the use of biofuels. The Des Moines Register (Iowa)