Sen. Charles Grassley, R-Iowa, applauded lawmakers Tuesday for stopping a measure that would have curbed ethanol subsidies.

The Senate voted down an amendment Tuesday that would have repealed an ethanol tax credit.

Several Iowa companies receive federal funds from ethanol-subsidy programs. Some officials say removing those incentives would damage fragile job growth while also boosting prices on ethanol-blended gasoline.

“The amendment was misguided and out of touch,” Grassley said in a release. “Jobs are scarce, and gas prices are too high, and this tax increase would make both situations worse.”

He also said that ethanol is important domestic energy resource.

“Grain ethnaol has set the stage for the next generation of cellulosic ethanol,” Iowa’s senior senator said. “We’ve seen what it’s done to displace foreign oil, and the sky is the limit as we move forward with domestically produced alternative energy sources.”

— by Adam B Sullivan