I've heard that REGI is owed at least $80 million in back tax credits ( $1 per gallon government subsidy that was just passed by the Senate) This money will go straight to the bottom line. It will be a lump payment based upon 2012's shipping volume. This $1 per gallon subsidy will also be paid on all volume shipped this year ( 2013).
they will be lucky to get 20mm. The big problem is that right now bio fuel is trading between 3.60 and 4.10 a gallon and getting cheaper. Going forward they could be lossing .30 to .40 per gallon. One screw-up in hedging and this stock could be less than a dollar. This company has a history of problems and lossing money.
On the high side, the credit goes to the first one who dilutes B100. So if REGI topped off the tanks will 1% of petro diesel, it would be the entitled to the IRS check. In 2012 REGI sold more than 180 million gallons (assumed 4Q guidance was met) which translates to $6.00 per share.
At this time REGI has not provided any guidance on the number of gallons it topped off and became the blender, nor has it provide insight into whether it entered into agreements to share the tax credit with its feedstock providers or customers. FWIW, SYNM has announced that it retained the right to all of its tax credits. REGI may not has not, but should it provide guidance any time soon, those who speculate that that payment is a large one could be rewarded sooner rather than later.
Good source of into is biofuelsdigest. Look for article on us-congress-passes-fiscal-cliff-deal
...provisions were in the bill that directly impact biofuels (skip down to biodiesel):
...Incentives for biodiesel and renewable diesel. The bill extends for two years, through 2013, the $1.00 per gallon tax credit for biodiesel, as well as the small agri-biodiesel producer credit of 10 cents per gallon.
--- I believe the $1 per gallon tax credit goes directly to the blender, as stated in the bill Section 6426:
26 U.S.C. Section 6426 - Credit for alcohol fuel, biodiesel, and alternative fuel mixtures:
(c) Biodiesel Mixture Credit
...(3) For purposes of this section, the term "biodiesel mixture" means a mixture of biodiesel and diesel fuel ... which (A) is sold by the taxpayer producing such MIXTURE to any person for use as a fuel, or (B) is used as a fuel by the taxpayer producing such mixture
26 U.S.C. Section 40A - Biodiesel and renewable diesel used as fuel
(b) definition of biodiesel mixture credit, biodiesel credit, and small agri-biodiesel producer credit
(2) biodiesel credit - (A) In general the biodiesel credit of any taxable year is $1 for each gallon of biodiesel which is not in a mixture with diesel fuel and which during the taxable year (i) is used by the taxpayer as a fuel in a trade or business, or (ii) is sold by the taxpayer AT RETAIL to a person and placed in the fuel tank of such person's vehicle.
Also, (4) Small agri-biodiesel producer credit (A) In general ...agri-biodiesel producer for any taxable year is 10 cents for each gallon of qualified agri-biodiesel production
Also, see Section 405 EXTENSION OF INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.
(a) CREDITS FOR BIODIESEL AND RENEWABLE DIESEL USED AS FUEL.--Subsection (g) of 26 U.S.C. Section 40A is ammended by striking "December 31, 2011" and inserting "December 31, 2013".
(b) EXCISE TAX CREDITS AND OUTLAY PAYMENTS FOR BIODIESEL AND RENEWABLE DIESEL FUEL MIXTURES -- (1) Paragraph (6) of Section 6426 (c) is ammended by striking ...2011 and inserting ...2013.