Silbond Corp. could benefit from tax credit 7.22.09
A proposed tax credit could benefit Weston’s Silbond Corporation—America’s only producer of ethyl silicate used in many Department of Defense applications.
Congressman Mark Schauer (D-MI) introduced the American Commercial Ethanol Fairness Act of 2009 (HR 3235) with the support of local business, labor and economic development officials. The legislation corrects an unintended consequence of the Volumetric Ethanol Excise Tax Credit—signed into law by President Bush in 2004—which has artificially inflated commercial ethanol market prices and had a severe financial impact on Silbond.
“By leveling the playing field, we can help this innovative manufacturer survive and thrive in Lenawee County for years to come, allowing them to save and create good-paying jobs,” said Schauer.
The measure will help protect American national security interests, Schauer said, and also help address the U.S. trade deficit.”
Schauer’s legislation would establish a 45 cent tax credit for each gallon of ethanol used to produce Tetra Ethyl Ortho Silicate (TEOS—also known as ethyl silicate), a substance used in micro-electronics, marine coatings and many U.S. Department of Defense applications. Each year, Silbond exports half of its production to countries including Mexico, China, Japan and Korea, which helps level America’s trade deficit.
“This tax credit will provide an immediate economic stimulus,” said John W. Gruber, Chief Financial Officer for Silbond Corporation. “Silbond will be able to keep and create jobs and invest in capital equipment and latest technologies, which will in turn allow our vendors and suppliers to retain and create jobs. There will be a definite, positive impact on the economy in Lenawee County, the State of Michigan, the Midwest region and the entire country.”
TEOS is a strategic raw material component in the manufacture of DRAM, flash logic, analog mixed signal, discrete devices and developmental research products by Dell, Texas Instruments, Motorola, Intel, Lawrence Livermore Labs, National Security Administration, Sandia National Labs, BAE Systems Information and Electronic Warfare Systems, Honeywell and others. It is also used in the production of primer coatings for corrosion protection on U.S. naval ships.
Last year, the Lenawee County Commission approved a resolution calling on Congress to take action on similar legislation.
“The Lenawee Economic Development Corporation supports Congressman's Schauer's legislation,” said James P. Gartin, President and CEO of the Lenawee Economic Development Corporation.
To learn more about Silbond Corporation, visit www.silbond.com.
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