Silbond Corp. could benefit from tax credit 7.22.09

Written by David Green.

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.

  • Play Practice
    DRAMA—Fayette schools, in conjunction with the Opera House Theater program, will present two plays Friday night at the Fayette Opera House. From the left is Autumn Black, Wyatt Mitchell, Elizabeth Myers, Jonah Perdue, Sam Myers (in the back) and Lauren Dale. Other cast members are Brynn Balmer, Mason Maginn, Ashtyn Dominique, Stephanie Munguia and Sierra Munguia. Jason Stuckey serves as the technician and Trinity Leady is the backstage manager. The plays will be performed during the day Friday for students and for the public at 7 p.m. Friday.
  • Front.F.school
    PROGRESS continues on the agriculture classroom addition at Fayette High School. The project will add 2,900 square feet of space and include an overhead door that would allow equipment to be driven inside. The building should be ready for the start of school in August. Work on ball fields and a running track is also underway.
  • Front.rover
    CLEARING THE WAY—Road crossings in the area on the construction route of the Rover natural gas pipeline are marked with poles and flags as preliminary work nears. Ditches and field entry points are covered with thick planks in many areas to support equipment for tree clearing operations. Actual pipeline construction is progressing across Ohio toward a collecting station near Defiance. That segment of the project is expected to wrap up in July. The 42-inch line through Michigan and into Ontario is scheduled for completion in November. The line is projected to transport 3.25 billion cubic feet of natural gas every day.
  • Front.geese
    ON THE MOVE—Six goslings head out on manuevers with their parents in an area lake. Baby waterfowl are showing up in lakes and ponds throughout the area.
  • Accident
    FAYETTE resident Patricia Stambaugh, 64, was declared dead on the scene of a single-vehicle accident Friday morning south of Morenci. Rescue units were called around 9 a.m., but as of Tuesday, law enforcement officers had not yet determined the time of the accident. According to Ohio State Highway Patrol, Stambaugh was driving west on U.S. 20 when her Chevrolet Malibu traveled off the north side of the road and down a steep embankment, coming to rest in Bean Creek (Tiffin River).
  • Front.teacher Leading
    PRESCHOOL MUSIC—Fayette band director Jeffrey Dunford spends the last half hour of the day leading the full-day preschool class in musical activities. Additional photos are on page 7 of this week’s Observer.
  • Front.poles
    MOVING EAST—Utility workers continue their slow progress east along U.S. 20 south of Morenci. New electrical poles are put in place before wiring is moved into place.
  • Face Paint
    FUN NIGHT FUN—Savanna Miles sits patiently while Abbie White works on a face paint design Friday during the Morenci PTO Fun Night. Gracie Snead watches the progress after having spent time in the chair. Abbie was one of several volunteer painters, each creating their own unique look. Additional photos are on the back page of this week’s Observer.

Weekly newspaper serving SE Michigan and NW Ohio - State Line Observer ©2006-2017