KapStone Paper and Packaging Corporation Gains Approval as Producer of Cellulosic Biofuel
August 29, 2010
Registration Qualifies Company for 2009 Income Tax Credit
NORTHBROOK, Ill – August 26, 2010 – KapStone Paper and Packaging Corporation (NYSE:KS) (KapStone) announced that the Company was notified that its registration as a producer of cellulosic biofuel for the tax year 2009 has been approved. With this registration, KapStone may apply for a nonrefundable income tax credit of $1.01 per gallon of qualified cellulosic biofuel for the black liquor burned in early 2009 when the Company did not claim the alternative fuel mixture tax credit. KapStone estimates that a net $22 million benefit related to cellulosic biofuel will be reflected in the Company’s third quarter 2010 income tax provision. There is no certainty the full benefit will be utilized to offset future taxes payable as it will be dependent on future taxable income.
About the Company
Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is a leading North American producer of unbleached kraft paper products and linerboard. The Company is the parent company of KapStone Kraft Paper Corporation which includes paper mills in Roanoke Rapids, NC and North Charleston, SC, a lumber mill in Summerville, SC, and five chipping mills in South Carolina. The business employs approximately 1600 people.
