WESTLAKE, Ohio--(BUSINESS WIRE)--TravelCenters of America Inc. (Nasdaq: TA) today announced that the U.S. Government biodiesel tax credit was retroactively reinstated for 2018 and 2019 in congressional legislation passed on December 20, 2019. TA expects to recognize approximately $72 million related to the biodiesel tax credit reinstatement for 2018 and 2019 in its fourth quarter 2019 financial statements as a reduction to TA's fuel cost of goods sold. In addition to reinstating the federal biodiesel tax credit for 2018 and 2019, this legislation also extended the tax credit through year end 2022.
About TravelCenters of America Inc.:
TravelCenters of America Inc. (Nasdaq: TA) is the nation's largest publicly traded full-service travel center network. Founded in 1972 and headquartered in Westlake, Ohio, its more than 21,000 employees serve customers in over 260 locations in 44 states and Canada, principally under the TA®, Petro Stopping Centers® and TA Express® brands. Offerings include diesel and gasoline fuel, truck maintenance and repair, full-service and quick-service restaurants, car and truck parking and other services and amenities dedicated to providing great experiences for professional drivers and the general motoring public. TravelCenters of America operates nearly 650 full-service and quick-service restaurants and 10 proprietary brands, including Quaker Steak and Lube®, Iron Skillet® and Country Pride®. For more information, visit www.ta-petro.com.
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- The extension of the U.S. Government biodiesel tax credit through 2022 may imply that TA will recognize similar or greater annual tax credit amounts as it estimates it will recognize for 2018 and 2019. However, the amount of the credit is based on the number of biodiesel gallons sold. TA’s ability to recognize this credit beyond 2019 is subject to risks, including market and customer demand for TA’s biodiesel products and other factors beyond TA’s control. As a result, TA may not recognize similar annual U.S. Government biodiesel tax credit amounts through 2022 as it estimates it will recognize for 2018 and 2019.
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