(18/05/07) Proposals to support tax credits for Biofuels

It has been reported that Michigan's Democratic members of Congress and Gov. Jennifer Granholm unveiled several proposals Thursday aimed at providing more federal help for manufacturers, including a few ideas aimed to defuse calls for higher fuel economy standards from automakers.

 

The Democrats said they would push Democratic presidential candidates to take a position on their Advanced Manufacturing Initiative, which includes ideas such as tax credits for biofuels, more government investment in research and tougher stands by federal officials in international trade, such as currency manipulation.

 

One proposal would excuse automakers from annual federal fuel economy increases through 2020 if they committed to building all of their new vehicles with either fuel-saving features, such as gasoline-electric hybrids, or with engines that could get at least 35 m.p.g. by 2020. It also would require automakers to make at least half their vehicles capable of running on 85% ethanol fuel by 2012 -- a target Detroit automakers have set.

 

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