Black Liquor Tax Credit Seen as 'Bailout' of Containerboard Industry

摘要

In the July 25 Official Board Markets we saw a news item about how the alternative fuel (black liquor) tax credit has bolstered one containerboard producer's quarterly results. Throughout the summer there has been a steady stream of reports, all touting the benefits derived by major integrated companies from this tax credit. PCA, International Paper (IP), Smurfit-Stone (SSCC), Temple-Inland (TI), and others have all laid claim to their share in the first half of this year. Your front-page piece on PCA's second quarter noted that the company enjoyed net income of $135 million in the first six months of'09, with $81 million coming from alternative fuel mixture tax credits.