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Paper Companies Gaming the Tax Credit System?

For paper industry, tax credit turns ‘black liquor into gold’
By Steven Mufson, The Washington Post

www.bangordailynews.co...

Burning the fuel known as “black liquor” dates to the 1930s, and paper companies have consumed nearly all of the byproduct since the 1990s.

A J.P. Morgan analyst report said the companies were “burning black liquor into gold.”

International Paper announced recently that it received a $71.6 million cash payment from the Treasury to cover a one-month period of operation late last year, from mid-November to mid-December. A Goldman Sachs report issued March 25 estimated that International Paper alone could receive as much as $1.06 billion in tax benefits this year. J.P. Morgan said International Paper could reap as much as $3.7 billion in benefits.