U.S. Court Upholds Ethanol Tax Credit

08/22/96

Reuters has reported that a U.S. appeals court Tuesday ruled against environmentalists and upheld the dismissal of a suit against the Treasury Department for authorizing a federal tax credit for use of ethyl tertiary butyl ether, a fuel additive derived from ethanol.

The Friends of the Earth, the Florida Audubon Society and the Florida Wildlife Federation sued the Treasury Department, arguing that the tax credit would damage the environment by increasing production of corn, sugar cane and sugar beets. A district court dismissed the suit on the grounds that the plaintiffs had not shown that they would suffer injury. The U.S. Court of Appeals for the District of Columbia affirmed the dismissal.

Paul Dever -- The Auto Channel