U.S. ethanol subsidy part of tax deal: trade group

The 45-cent a gallon excise tax credit for ethanol is scheduled to expire on Dec 31. So would a 54-cent a gallon tariff on imported ethanol and a 10-cent a gallon credit for small producers of ethanol.

In a statement, the Renewable Fuels Association said that an extension of the credit "is part of the deal at the moment," according to congressional and Obama administration sources.

"The final details -- the length of the extension and the value of the credit --are still being discussed," said RFA. It cautioned the contents of the tax bill still could change.

A 36-cent ethanol tax credit for 2011 was proposed last week by the chairman of the Senate's tax committee, along with an 8-cent small producer credit, continuation of the 54-cent import tariff and revival of a $1 a gallon biodiesel credit.

(Reporting by Charles Abbott; Editing by Marguerita Choy)