Congress hears testimony on tax credits for LFGs
Washington, DC— Curt Ranger,
president of DTE Biomass Energy, Inc., testified before the U.S.
House Ways and Means Subcommittee on Select Revenue Measures regarding
tax credits for landfill gas facilities. Ranger, who is also the
chairman of SWANA’s Landfill Gas Advocacy Committee, spoke
about the importance of expanding and increasing the tax credit
for landfill gas-to-electricity that was included in last year’s
American Jobs Creation Act.
Also referred to as a “section
45 credit,” this section of the Internal Revenue Code gives
a tax credit per kilowatt hour (kWh) for renewable energy generators.
The credit currently provides 0.9 cents per kWh over a period
of five years. However, the eligibility, or “placed in service,”
window, is due to expire at year’s end.
In his testimony, Ranger stated,
“If Congress enacts an extension of the current December
31, 2005 placed-in-service deadline, many more projects could
come on-line. Based upon EPA estimates, over 500 landfill gas-to-energy
projects can still be developed, and based upon DTE’s experience,
extending the construction deadline three years would enable the
landfill gas industry to build up to 150 of these projects.
Furthermore, if the landfill gas
industry was afforded the same provisions as other renewable energy
resources, such as ten-year credit periods, five-year placed-in-service
deadlines, and full tax credit value for electricity produced
from landfill gas, Congress could enable the development of most
of the EPA’s 500 viable candidate sites.”
SWANA’s Landfill Gas Advocacy
Coalition has been in operation for over seven years, working
towards implementation of broader tax relief for landfill gas-to-energy
facilities as an incentive to place more of these alternative
energy generators into operation. The coalition consists of concerned
members of SWANA’s Landfill Gas Technical Division, as well
as major organizations in the landfill gas-to-energy field.