Unfortunately, the Fifth Circuit Court of Appeals just reinstated the January 1, 2025 deadline for BOI Filings under the Corporate Transparency Act. Click here for the court’s order for reference. The Financial Crimes Enforcement Network (FinCEN) just announced last night that it will relax the CTA’s BOI filing deadline beyond January 1, 2025. The deadline was not changed by the courts or Congress, but basically FinCEN is communicating that it will not start enforcing penalties for late filings until January 13, 2025. Therefore, we encourage everyone to get their outstanding BOI reports uploaded into FinCEN no later than January 12, 2025. If anything changes again, we will be sure to alert you. Here is a summary of the new deadlines, which can also be found at https://www.fincen.gov/boi:

• Companies that were created prior to January 1, 2024 have until January 13, 2025 to file their initial reports with FinCEN. (These companies would otherwise have been required to report before January 1, 2025 given today’s court decision.)
• Companies created on or after September 4, 2024, that had a filing deadline between December 3, 2024 and December 23, 2024, now have until January 13, 2025 to file their initial reports with FinCEN.
• Companies created on or after December 3, 2024 and on or before December 23, 2024, have an additional 21 days from their original filing deadline to file their initial reports with FinCEN.
• Companies that qualify for disaster relief may have extended deadlines that fall beyond January 13, 2025. These companies should abide by whichever deadline falls later.
• Companies that are created on or after January 1, 2025 have 30 days to file their initial reports with FinCEN.

In a somewhat surprising move, the Fifth Circuit granted the Department of Justice’s request to stay (or stop) the preliminary injunction that was pausing the CTA’s implementation. Therefore, the bottom line – for today – is that Beneficial Ownership Information (“BOI”) filings are once again due by the end of this year. Everyone who has not filed yet is back on the original deadline.

As a reminder, back in December 2020, Congress passed the Corporate Transparency Act (CTA) as part of the National Defense Authorization Act (NDAA) that created a federal framework for reporting, storing, and disclosing Beneficial Ownership Information (BOI) of “reporting companies.” The CTA requires most small businesses in the United States to make a filing with the Financial Crimes Enforcement Network.

EMA partnered with Wolters Kluwer earlier this year to prepare marketers to file through BizFilings’ BOI reporting tool which reduces filing times and errors through a streamlined, secure and automated workflow. BizFilings offers EMA member companies a 12 percent discount off BOI report filings. The discount can be accessed via a dedicated EMA-member landing page below.

Looking ahead…

The pro-business plaintiffs in the case may next petition the Fifth Circuit to rehear the matter en banc. The term “en banc” refers to a special judicial procedure where all judges of a particular court can hear the case because its importance or complexity. There is a chance that such a petition could be successful and reinstitute the stay, but that is impossible to predict as of the date of this alert. Further, it is yet to be seen how a new administration under President Trump will handle the CTA – but the new administration does not take charge until January 20, 2025, well after the end-of-year deadline. And Congress is now on break until January 3, 2025 – having not touched the CTA in its most recent Continuing Resolution which funded the government through March 14, 2025. Bottom line: EMA encourages its members to get this done by December 31, 2024.

2025 Federal Motor Fuel Excise Tax Rates and Credits

Superfund Tax: The Superfund tax was reinstated on crude oil received at refineries and on imported petroleum products, beginning 1/01/23 by the Inflation Reduction Act. The tax rate is the sum of the Hazardous Substance Superfund rate and the Oil Spill Liability Trust Fund financing rate. For calendar years beginning in 2024, the Hazardous Substance Superfund financing rate is adjusted for inflation. For calendar year 2025, the tax rate is $0.26 cents per barrel. The Superfund tax is paid by refiners and crude oil and finished product importers. While no party below the terminal rack is liable for the Superfund tax, refiners and importers pass the fee down as a cost folded into the wholesale rack price of petroleum products –– not as a tax. Marketers are not required to break this fee out as a “tax” on their invoices or contract bids. Note that the Superfund rate is not refundable to any party along the petroleum refining and distribution chain. Marketers with questions should consult with their suppliers.

Highway Trust Tax: The Federal government collects revenue for the Highway Trust Fund primarily from excise taxes on motor fuels. Federal taxes include excises taxes of 18.3 cents per gallon on gasoline and 24.3 cents per gallon on diesel fuel, plus a Leaking Underground Storage Tank (LUST) tax of 0.1 cents per gallon on both fuels. The Table below includes the excise taxes collected from this program, including the total 18.4 cents per gallon tax on gasoline and the 24.4 cents per gallon tax on diesel fuel.

Lust Tax: The LUST tax applied to motor fuels is non-refundable, for which tax-exempt parties are required to pay the .001 cents per gallon. The Table below includes rates for the .001 cents per gallon non-refundable LUST tax imposed on both dyed and clear liquid fuel:

Notes

*This tax is paid by the railroads, NOT by the ultimate vendor.

** Marketers pay $.244 cpg at the rack, user’s rate is $.219. Ultimate vendor claim is 2.5 cpg. The ultimate vendor is the only party that can make the claim for the 2.5 cpg. Ultimate vendor must have a certificate from the ultimate purchaser verifying the fuel is used for non-commercial aviation. Ultimate vendor must have an IRS 637 UA registration to file claim.

***For taxation purposes, one gasoline gallon equivalent (GGE) is equal to 5.75 pounds (lbs.) of propane and 5.66 lbs. of CNG. One diesel gallon equivalence (DGE) is equal to 6.06 lbs. of LNG. (Reference 26 U.S. Code 4041 and 4081).

More Than 20 States Are Set to Increase Minimum Wage Rates in 2025

On January 1, 2025, more than 20 states will raise the minimum wage. Note that some states make annual adjustment for inflation but have not announced rate changes yet, and that local jurisdictions are also set to increase their minimum wage rates at the beginning of next year. Marketers are advised to consult with their payroll services to determine if there are any minimum changes with their local jurisdictions.

The U.S. Department of Labor (DOL) has an interactive map which identifies the minimum wage rate of each state. See DOL State Minimum Wage Laws. The Federal minimum wage rate remains at $7.25 per hour for non-tipped employees and $2.13 per hour for tipped employees (with a maximum tip credit of $5.12)

IRS Issues Standard Mileage Rates for 2025

The Internal Revenue Service (IRS) issued the optional 2025 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. The mileage rate for automobiles driven for business will increase by 3 cents in 2025, while the mileage rates for vehicles used for other purposes will remain unchanged from 2024. Beginning on January 1, 2025, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 70 cents per mile driven for business use (up 3 cents from 2024).
• 21 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces (unchanged from 2024).
• 14 cents per mile driven in service of charitable organizations (unchanged since 2022).

These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles. Notice 2025-5 contains the optional 2025 standard mileage rates, as well as the maximum automobile cost used to calculate the allowance under a fixed and variable rate (FAVR) plan. In addition, the IRS Notice provides the maximum fair market value of employer-provided automobiles first made available to employees for personal use in calendar year 2025 for which employers may use the fleet-average valuation rule in or the vehicle cents-per-mile valuation rule.

EMA Legal Update: VISA/MasterCard Settlement Administrator Holding Free Webinar on January 8th at 2pm EST

The Co-Lead Counsels and Settlement Administrator in the Visa/Mastercard interchange class action settlement are hosting a free webinar on January 8^th at 2pm EST for retailers to learn how to claim their share of the $5.5 billion settlement.

President Signs Federal Spending Legislation

President Biden signed the government funding bill which passed the House last Friday 366-34-1. 170 Republicans voted yes, and 196 democrats voted yes with one voting present. The Senate cleared it later that night following House passage. While the bill extends funding through March 14 and includes $100 billion for disaster recovery and a one-year extension of the farm bill, the bill doesn't include the year-round waiver for e15. The bill also doesn't increase the debt limit requested by Trump and a one-year delay in the Corporate Transparency Act (CTA) Beneficial Ownership Information (BOI) requirements.

Weekend Reads

Trump’s big Mike Johnson decision

Musk pressure ‘nothing new’ for Congress, GOP senator says

FDA Alerts Industry and Consumers about the Use of Amanita Muscaria or its Constituents in Food

Federated Insurance Risk Management Academy Webinar
OSHA 2025: Inspection Readiness and Regulatory Updates: Thursday, January 16, 2025, 1:00 p.m. Eastern Standard Time

Learn how to navigate OSHA inspections with confidence. This webinar will cover what inspectors look for, the post inspection process, and steps your business can take to stay prepared. You’ll also explore the Top 10 Most Frequently Cited Standards and recent updates to the Hazard Communication Standard.

What you will learn:

• Overview of the OSHA Inspection Process
• Strategies to help minimize the risk of citations and penalties
• Summary of Hazard Communication Standard updates
• Training resources, programs, and policies to implement in your business

Who Should Attend:

• Risk Managers
• Operations Managers
• HR Professionals
• Owners/Operators

After registering, you will receive a confirmation email and calendar appointment. You may access this and other webinars on federatedinsurance.com.

Please always feel free to contact your Federated regional representative or EMA’s National Account Executive Patrick Cunningham at 507.455.8935 for any additional information or risk management questions. Federated is a Partner in EMA’s Board of Directors Council.

Chevron
Tips for Picking the Right Cold Weather Biodiesel Blend

Most of us probably don’t want to hear it, but winter is around the corner. Fleets operating in cold-weather regions don’t need a reminder. They’ve been planning their winter fuel usage for weeks now.

A common question Chevron Renewable Energy Group hears from fleet customers is, “What’s the right blend for me in the winter?” That leads to a cascade of other questions. Here are the ones we hear most frequently while we help fleets make sure they’re running on the right blend and getting the most out of biodiesel’s benefits.

Can I use biodiesel in the cold?

The short answer is yes. Let’s address the misconception that biodiesel does not work well in cold weather. The fact is that fleets have driven millions of miles in below-freezing temperatures on blends up to B20. Biodiesel’s cloud point does matter, but let’s not forget that petroleum diesel also has difficulties in cold weather. Proper blending, storage and handling along with the use of good winter fuel additives are the keys to success — for both biodiesel and petroleum diesel. Access complete article here.

For additional information about Chevron, please visit or contact Jason Lawrence. Chevron is an EMA Executive Committee Council Partner.