WASHINGTON (Reuters) - Final language for an extension of the U.S. ethanol tax credit "could emerge today," a trade group said on Thursday, with the 45-cent credit now set to expire on December 31.
Senator Saxby Chambliss, the senior Republican on the Senate Agriculture Committee, told Reuters that a 45-cent credit was the most likely outcome at the moment.
He said there was "back and forth" on the matter and that at one point, senators favored a two-year extension at 36 cents.
An industry source, who asked not to be identified, said a one-year extension at 45 cents was widely mentioned on Wednesday, but there was no final agreement.
Earlier, a spokesman for the Renewable Fuels Association said there was no word on how long the extension would run or if the credit would be reduced.
Leaders of the House and Senate tax-writing committees have suggested a one-year extension, with the credit set at 36 cents. Nineteen of the 100 senators are on record in wanting to eliminate the credit.
"Meeting last night, lawmakers were reported to be ironing out the details -- the length of the extension and the value of the credit," said RFA in a statement. "As for timing, the RFA is hearing that final language could emerge today."
(Reporting by Charles Abbott; Editing by Walter Bagley and Marguerita Choy)