Company: REX
Filing Date: 2025-06-04
Form Type: 10-Q
Source: 0000930413-25-001941
Chunk: 76

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 8
Chunk 76
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2023 through 2025. Additionally, in 2023, the EPA restored 250 million gallons previously waived. The
EPA was required to propose RVOs for 2026 by November 2024, but that deadline was missed. The EPA delivered the proposed 2026
RVOs to the White House Office of Management and Budget on May 14, 2025, which is the final step before being released to the
public for comments.

The EPA has issued emergency waivers for
the sale of E-15 gasoline for the 2025 summer months. This is the fourth consecutive year for these emergency waivers. The EPA
has not granted E-15 the same Reid vapor pressure waiver as E-10, so absent the emergency waivers, E-15 may not be sold in most
states from June 1 to September 15.

The IRA may impact our business by creating
a new Clean Fuel Production Credit, section 45Z, available for years 2025 to 2027. The Clean Fuel Production Credit is established
at approximately $0.02

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per ethanol gallon per CI point reduction below a 50 CI score
threshold. The Act also raises the carbon capture tax credit from $50 per metric ton to $85 per metric ton, under section 45Q.
Taxpayers may elect to be treated as making a payment against tax for 100% of the value of the 45Q credit (“direct pay”)
for the first five years, starting with the year a qualifying carbon sequestration facility is placed in service, but not beyond
December 31, 2032. Companies may elect either the 45Q credit or the 45Z credit in periods in which both tax credits are available.
Other potential impacts include (a) extending the biodiesel tax credit, which could impact our renewable corn oil values, as this
co-product serves as a low-carbon feedstock for renewable diesel and biomass based diesel production; (b) creating a new tax credit
for synthetic aviation fuel; (c) funding biofuel refueling infrastructure which could impact the availability of higher level
ethanol blended fuel; and (d) provision for production and purchase credits for electric vehicles, which could impact the amount
of internal combustion engines on the road over time, and ultimately reduce the demand for gasoline, diesel fuels and ethanol.

The U.S. Congress is considering a budget and policy bill which, as initially passed by the House of Representatives, includes proposed amendments to