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RCED-84-1 1 (1984-06-06)

handle is hein.gao/gaobabepy0001 and id is 1 raw text is: 
                        *''            o  '  'RELEASED



 BY THE US, GENERAL ACCOUNTING OFFICE


 Report To The Honorable Charles H. Percy,

 David Durenberger, And J. James Exon

 United States Senate






 Importance And Impact Of Federal

 Alcohol Fuel Tax Incentives





 Federal tax incentives have been, and continue to be,
 vital to the growth of the alcohol fuel (ethanol)
 industry With these incentives, the industry in-
 creased production tenfold between 1979 and 1982.

 he net impact of the incentives on the overall
 conomy has been small Specifically, total economic
 ctivity, employment, and the nation's trade balance
 have not been significantly affected by ethanol
 production. The net impact on the federal budget is
 not large. The budgetary cost of the subsidy is at least
 partially offset by savings in agricultural price support
 1programs due to the added demand for corn for
 ethanol production Finally, ethanol production has
 marginally enhanced national energy security by
 ,displacing small quantities of imported oil

 Balancing the incentives' costs and benefits, GAO
 believes that sufficient justification exists to continue
ithe incentives until their current scheduled 1992
expiration date.





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   7                                                            JGAO/RCED-84-1
                  1Ccc' I&V~JUNE 6. 1984

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