Alto Ingredients, Inc. (ALTO) has disclosed a new risk, in the Taxation & Government Incentives category.
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Alto Ingredients, Inc. faces a significant risk concerning its ability to qualify for Section 45Z tax credits, which are crucial for low carbon fuel producers under the Inflation Reduction Act of 2022. The company’s Colombia plant and Pekin Campus dry mill are expected to apply for these credits, but their eligibility hinges on producing low carbon fuel at specific carbon intensities and volumes. Any failure to meet these production targets, whether due to operational disruptions or other factors, could prevent Alto Ingredients from receiving the anticipated tax benefits. This shortfall could materially and adversely impact the company’s financial performance and operational results.
Overall, Wall Street has a Moderate Buy consensus rating on ALTO stock based on 2 Buys.
To learn more about Alto Ingredients, Inc.’s risk factors, click here.