Alcoa's Tax Credit Clarification and Outlook Update

Alcoa Corporation welcomes the clarification on Section 45X of the Advanced Manufacturing Tax Credit, aiming to incentivize domestic production of critical materials for the transition to clean energy. The company expects to record a benefit of $35 million to $40 million related to its Massena smelter in New York and its Warrick smelter in Indiana. However, it plans to submit written comments regarding the definition of production costs. Additionally, Alcoa intends to record a valuation allowance on certain deferred tax assets in Brazil, resulting in a charge of $140 million to $150 million, or $0.78 to $0.84 per share.