NEW MARKET TAX CREDIT ENTITIES

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

NEW MARKET TAX CREDIT ENTITIES

NEW MARKET TAX CREDIT ENTITIES

In 2010, Verso entered into a financing transaction with Chase Community Equity, LLC, or “Chase,” related to a $43 million renewable energy project at the mill in Quinnesec, Michigan, in which Chase made a capital contribution and Verso Finance made a loan to Chase NMTC Verso Investment Fund, LLC, or the “Investment Fund,” under a qualified New Markets Tax Credit, or “NMTC,” program, provided for in the Community Renewal Tax Relief Act of 2000. The NMTC was subject to 100% recapture for a period of 7 years as provided in the Internal Revenue Code. At the end of the recapture period in December 2017, and as a result of the put, all obligations to Chase have been met and the $8 million, net of related expenses of $1 million, is recorded as an extinguishment gain and included in Other (income) expense on the Consolidated Statement of Operations for the year ended December 31, 2017.