The subsidies amd "offsets" artificially decrease the price of ethanol... so in essence the taxpayers (i.e. you and me) are paying for ethanol whether we like it or not.
So lets see, it needs subsidies in order to be competitive in the market place and it uses more energy to produce than gasoline.
How is this economically wise or energy efficient?
it's a boondoggle because it takes more energy to create E85 than it does to create regular unleaded gasoline.
You need to cite your sources, what I've read says it is close to 1 but not 1:
Ethanol - Wikipedia, the free encyclopedia
http://www.transportation.anl.gov/pdfs/AF/265.pdf
Also, the energy returned on energy invested EROEI for ethanol made from corn in the U.S. is close to 1 [16], which means that it takes nearly as much energy (through natural gas based fertilizers, farm equipment, transformation from corn or other materials, and transportation) to create ethanol as the ethanol itself produces when put to work. Lynn Ellen Doxon flatly rejects these claims because the EROEI models fail to include the energy reducing byproducts of ethanol production. For instance, EROEI assumes the distilation process would require fossil fuel. The heat needed for distilation can easily be produced by burning the corn stalks. Similarly, Doxon points out the EROEI report does not account for the beneficial waste products produced from corn based ethanol. Cogeneration units produce electricity from corn stalks and use waste heat in the distilation process, waste mash is used as a high protein animal feed, and ash and animal waste from the entire agricultural process eliminates the need for petroleum based fertilizers. [Alcohol Fuel Handbook].