NATION Bill to change tax collection on ethanol

Ohio motorists won't see a change at the pumps if the bill becomes law.
WASHINGTON (AP) -- Ethanol-tax changes that would increase highway funding to Ohio by about $150 million a year have been included in a corporate tax bill that passed the U.S. House on Thursday night.
The measure changed how gas taxes are collected on corn- and soy-based ethanol fuel to correct what Ohio officials call the "ethanol tax penalty."
The amount of money states get for highway projects is determined by how much gas taxes they collect. But part of the tax collected on ethanol doesn't count, so states that use a lot of ethanol lose money in the funding formula.
Ohio is the nation's third-largest ethanol user. Forty percent of Ohio motorists use ethanol fuel, compared to 11 percent of motorists nationally.
Requirement
The measure, which was added to the bill by the House-Senate conference committee that ironed out differences between the two chambers, requires all of the money collected on ethanol to go into the highway trust fund, which is used to maintain the nation's roads and bridges.
The change means $50 million more for Ohio each year, Rep. Rob Portman, R-Ohio, said.
Another provision in the bill would replace a 5.2 cent tax break for ethanol blenders with a tax credit of the same amount that would come out of general revenue instead of highway dollars. The change means an additional $100 million a year for Ohio, Portman said.
Neither change would affect what motorists pay at the pump.
The Senate was expected to also pass the bill and send it to the president by this weekend.