US Biodiesel Tax Incentive Will Benefit Biox, Will Add $7 M Contingent Revenue
BIOX Corporation (BX.TO) said today the recent passage by Congress of the U.S. Federal Excise Tax incentive, will benefit it. The biodiesel tax incentive is part of a larger legislative package titled, "The American Taxpayer Relief Act of 2012." The Act includes provisions for the reinstatement of the biodiesel tax incentive through to December 31, 2013 and it also makes the incentive retroactive to January 1, 2012.
"The retroactive reinstatement and extension of the biodiesel tax incentive through to the end of 2013 provides greater certainty for producers, refiners and importers," said Kevin Norton, Chief Executive Officer of BIOX Corp. "The passage of this legislation is significant to BIOX as the retroactive clause allows us to recognize approximately C$7 million in contingent revenue on product sold during calendar 2012, which will strengthen our earnings and cash position as part of the fiscal Q2 2013 reporting period. Extending the tax incentive through 2013 also allows us to capture additional value on product sold in the U.S. market."
The biodiesel tax incentive provides parties that blend biodiesel with petroleum diesel with a US$1.00 refundable tax credit for each U.S. gallon of biodiesel blended in the U.S.
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