U.S. blenders tax credit decision to support Neste’s 2019 result

December 29, 2019 |

In Finland, the U.S. Blender’s Tax Credit (BTC) was approved retroactively for the years 2018 and 2019, as well as for the years 2020–2022, which Neste says will have a positive impact on the company’s comparable operating profit in the last quarter of 2019. The retroactive reinstatement of the BTC is expected to improve Neste’s comparable operating profit by approximately EUR 140 million for 2018.

For said years, qualified biofuel blenders in the US are eligible for a Blender’s Tax Credit of $1.00 per gallon of biodiesel or renewable diesel used in the blending process.

The corresponding improvement for 2019 is still to be confirmed based on the actual 2019 blending volumes, but it is estimated to be in the magnitude of EUR 200 million. Cash flow relating to the BTC for 2018 and 2019 is expected to be mostly received during the first half of 2020.

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Category: Fuels

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