Last year, there was actually a tax extenders bill in the Senate that fell apart when Republicans tried to attach the Obamacare medical device tax repeal to it. There could be different dynamics this years with the Repubs in control and trying to show they can actually govern and pass bills. We'll see.
** Early outlook for tax activity in Congress; House leadership releases proposal to require dynamic scoring
Squire Patton Boggs
Brandon C. Roman and Erin L. McGrain
January 5 2015
Early Outlook for Tax Activity in Congress
As Congress returns to Washington, tax writers will prepare to move forward on several different fronts. As anticipated in our prior coverage, lawmakers were able to pass tax extenders legislation before the 113th Congress adjourned. The legislation, however, only provided a one-year retroactive extension of the more than 50 expired tax provisions for the 2014 calendar year. As such, effective January 1, 2015, these tax provisions expired again, leaving it to the 114th Congress to take action on the matter. While incoming Senate Finance Committee Chairman Orrin Hatch (R-UT) has indicated that his committee will debate tax extenders early in 2015, he and incoming House Ways and Means Committee Chairman Paul Ryan (R-WI) have also indicated that they “wish we could get permanency.”
Insider buys of 10,000 shares each around the $9.65 level. Not huge outlays, but not spare change, either, and is one way for insiders to signal to the market. Generally consider a positive indicator, but who knows.
This article is a week old. Sorry if it alarmed anyone. I still think it will be passed by the Senate this week.
You're right. Weird ... it just showed up in my news feed this morning. And I agree ... I think it's posturing to try to light a fire under the Senate.
Seems like a good deal ... works out to an acquisition at $0.55 per annual gallon produced at the current price ... not bad.
Likely explanation is that it was a requirement of the seller, particularly given the low/attractive valuation (at $20.9M for 69% of 55M of production capacity, REGI paid $0.55 per output gallon/year) and given that the seller is "Israel Corporation’s vehicle for investing in the alternative energy market."
This could be a curveball: "Obama Promises to Veto Pending Deal on Major Business Tax Breaks
By JONATHAN WEISMAN
NOV. 25, 2014
WASHINGTON — President Obama promised Tuesday to veto an emerging package of permanent tax breaks for businesses, mustering Democratic opposition and setting back negotiators who were nearing accord on a suite of tax cuts worth $440 billion over 10 years.
“The president would veto the proposed deal because it would provide permanent tax breaks to help well-connected corporations while neglecting working families,” said Jennifer Friedman, a White House spokeswoman.
The deal, negotiated by House Republicans and aides to Senator Harry Reid of Nevada, the majority leader, showed how much power has shifted since the Republican election victories early this month. White House officials said the package was heavily tilted toward corporations and will have deep repercussions for budget and tax negotiations far into the future.
But it also showed how Mr. Obama still can wield his authority. A veto would be the third and by far the most significant of Mr. Obama’s presidency. His threat sent negotiators back to the table to see if Republicans could add measures that would win liberal support, especially a permanently expanded child tax credit for the working poor.
Looks like there's tentative agreement on a deal, according to Politico:
** Draft tax break deal makes many corporate perks permanent
By BRIAN FALER 11/25/14 2:51 PM EST
Lawmakers are nearing a major tax deal worth more than $400 billion to permanently renew a batch of expired tax benefits, including major corporate perks.
Provisions giving business write-offs for investments and research and development programs would become permanent in the tentative pact, aides familiar with a plan being worked out between Senate Majority Leader Harry Reid and Ways and Means Chairman Dave Camp (R-Mich) said on Tuesday.
So would several provisions for individual taxpayers, including breaks for college tuition, public transit and one allowing write-offs for state and local sales taxes. “Bonus depreciation” — faster write-offs for business investment — would be renewed for another two years, as would many of the rest of the 50-odd extender provisions. A major exception: The wind production credit, a break hated by many Republicans, would be phased out over the next few years.
Not all Democrats will like the deal, in large part because it excludes renewal of recent expansions in the earned income tax credit and child tax credit that are due to expire at the end of 2017.
The agreement is not final, and its total cost is not immediately available, though aides said it will likely be at least $400 billion. The entire tally will be added to the budget deficit.
It comes one day after Treasury Secretary Jack Lew warned lawmakers the administration would not accept a deal it saw as giving away too much to Republicans and their allies in the business community.
The plan is sure to alarm budget watchdogs, who fear lawmakers’ commitment to belt tightening has begun to wane as the government’s deficit has declined over the past year or so.
Disappointing, but I actually don't mind this ... it was always going to be overshadowed by the tax extenders if it happened around end-of-year, so this separates out potential catalysts. Though, if extenders slip into next year as well, that's less exciting ...
I remember folks were very focused on this happening at some point with SYNM ... REGI moves at light speed in comparison. There's also a YouTube video link in the PR.
** Renewable Energy Group Celebrates Geismar Plant Grand Opening with Ribbon Cutting Ceremony
AMES, Iowa--(BUSINESS WIRE)--
Renewable Energy Group, Inc. (REGI) celebrated Wednesday the grand opening of its Geismar biorefinery, which is now producing renewable hydrocarbon diesel (RHD) in commercial-scale quantities.
The event marked the successful start-up of the 75-million gallon nameplate capacity plant that REG acquired in June. Beginning production on October 14, REG Geismar, LLC has already produced more than 4.7 million gallons of renewable fuel. REG-9000™/RHD produced at the plant meet or exceed ASTM D975 standards.
“REG Geismar strengthens our core biomass-based diesel business, allowing us to further expand our product offering to our customers,” said Daniel J. Oh, REG President and CEO. “It reinforces our commitment to advanced biofuels and demonstrates our confidence in this market.”
The Geismar biorefinery, REG’s largest, is the company’s first plant to produce RHD using Bio-Synfining™ technology developed by REG Synthetic Fuels, LLC in Tulsa, Okla. The process converts a wide range of feedstocks, such as animal fat, inedible corn oil, used cooking oil and vegetable oils, into renewable fuel.
In addition to RHD, the Geismar facility produces renewable naphtha and liquefied petroleum gas. The plant employs 45 full-time employees and 30 contract maintenance workers.
“Our teams in Geismar, Tulsa, and Ames worked together to bring this plant online, producing at rates near its nameplate capacity,” said Derek Winkel, REG Executive Director, Manufacturing Operations. “We are pleased with the progress made and will continue to build upon our success with future planned upgrades to the plant.”
Local businesses welcomed REG and applauded its investment in the community.
Here's the release:
"Renewable Energy Group Enters Petroleum Distribution with REG Energy Services, LLC
Wed Feb 12, 2014 1:17pm EST
New Division to Sell Heating Oil, ULSD, and Biofuel Blends
Renewable Energy Group, Inc. ® (NASDAQ: REGI) announced today it has launched a new division that will sell petroleum-based heating oil and diesel fuel, and enable the company to offer more biofuel blends.
REG Energy Services, LLC will sell heating oil and ultra-low sulfur diesel (ULSD) at seven terminals throughout the northeastern U.S. as well as BioHeat® blended heating fuel at an existing REG terminal location.
“REG Energy Services complements our advanced biofuel business as we optimize and grow our fully integrated biodiesel business across North America,” said REG President and CEO, Daniel J. Oh. “It allows us to offer more products to our customers, including more biofuel blends, while also expanding our customer base.”
The new company will be regionally headquartered in Portsmouth, New Hampshire and led by Barry Knox, a long-time downstream petroleum distribution specialist. Before joining REG, Knox served the last 14 years as Chief Operating Officer at Total Energy Solutions, LLC. Knox just completed his term as a board member of the New England Fuel Institute (NEFI), and the Massachusetts Energy Marketers Association (formerly MOC), and was also a board member of the National Oilheat Research Alliance (NORA).
REG Energy Services is now market-
Hm, weird. My response got deleted. But I was saying that I've been wondering this myself, since REGI started their own distribution/blending arm in February. My thought is that a big part of that decision is capturing more of the tax credit by being the blender. I'm not sure how much they blend/sell directly through that channel, though.
NOTHING UNITES CORPORATE AMERICA LIKE THE EXTENDERS: Morning Tax has a first look at a letter headed for lawmakers today from a who’s who of industry groups demanding Congress revive the tax extenders. The companies are less concerned with lawmakers’ debates over whether some provisions should be made permanent than with getting them renewed as soon as possible. Delays could interfere with the next tax-filing season, the groups said, and failing to act altogether would be tantamount to a tax increase. “The undersigned organizations, representing millions of individuals, businesses of all sizes, community development organizations and nonprofit organizations, urge Congress to act in the lame-duck session to extend seamlessly, enhance or make permanent the expired and expiring tax provisions.” Among the signatories: the U.S. Chamber of Commerce, the American Farm Bureau Federation, the Financial Services Roundtable, the American Beverage Association, the National Retail Federation, the National Association of Manufacturers, the National Federation of Independent Business and the Business Roundtable.
Yahoo keeps deleting my posts on this, but there's a new interview up with Dan Oh. Too long to cut-and-paste here, but search for "Interview With Dan Oh, CEO Of Renewable Energy Group". It's really good -- much more detail than you hear on an earnings call. Additional detail on 90% run-rate at Geismar, REGI using its own pre-treatment technology at Geismar (which likely relates to the 90%; SYNM always had issues with this), and likely international expansion (the EU is mentioned).
One other possible date for action: the budget authorization needs to happen by Dec. 11 or else the government isn't funded (i.e. government shutdown). Some observers think it makes sense to combine the budget authorization and the extenders all in one vote. We'll see ...
It's really going to come down to how much sway the Tea Party Republicans in the House have in the lame duck ... everyone else pretty much seems on board.
Tax break negotiations in 'preliminary' stage
By Bernie Becker - 11/13/14 02:44 PM EST
Negotiations over extending a slew of expired tax breaks could take until the end of the current lame-duck session of Congress, top tax writers said Thursday.
Top Republicans and Democrats on the Senate Finance and House Ways and Means committees are trying to hash out a deal on the so-called “tax extenders,” the dozens of temporary provisions that expired at the end of 2013.
But both Ways and Means Committee Chairman Dave Camp (R-Mich.) and Rep. Sandy Levin (Mich.), the top Democrat on the panel, said the discussions have a long way to go.
John Koskinen, the IRS commissioner, has urged Congress to pass an extenders package before the end of the month, to ensure that the tax filing season can begin on time next year and refunds aren’t delayed.
But Democrats and Republicans are still working through several disagreements, including whether to restore of the temporary provisions indefinitely and whether to scrap some for good.
“We’re just at a preliminary stage right now, so I don’t want to rule anything in or out,” Camp told reporters on Thursday. “I look forward to engaging with Senate.”
In the recent past, tax extenders packages have been tacked on to broader tax deals struck later in lame-duck sessions — including almost two years ago, when an extension of the tax breaks was tacked on to the “fiscal-cliff” deal.
House Republicans are seeking to revive certain tax breaks that help business, like a popular credit for research and a couple of incentives for business expensing, without an expiration date.
Rep. Charles Boustany Jr. (R-La.) added Thursday that the “general consensus” among R
I'm almost certain that the version including in the extenders bill passed by the Senate Finance Committee (which is the odds-on-favorite to be the bill that is passed) was for retroactive to 2014 and forward to 2015.