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August 2006

 

Recycling tax credit bill introduced

United States Senator Jim Jeffords introduced a recycling tax credit bill July 13 known as the Recycling Investment Saves Energy (RISE) Act of 2006. This bill is designed to provide incentives for greater collection, distribution and recycling of paper, plastic, and other quality recyclable materials.

The bill, cosponsored by Senator Tom Carper, co-chair of the Senate Recycling Caucus, would also allow recycling facilities to be eligible for tax-exempt bond financing.

The RISE Act will help companies overcome financial barriers to recycling by providing them with tax incentives to help offset the high cost of machinery used to collect, distribute, or recycle material.

The tax incentives, which include a 15 percent tax credit or a 50 percent depreciation deduction for the purchase of machinery, will allow companies to acquire new recycling equipment and technology.

In 2004, 55 billion aluminum cans were wasted by not being recycled, which represents approximately $1 billion of aluminum lost. The recycling rate of paper is estimated to be roughly 51 percent, glass containers 35 percent, and plastic bottles less than 20 percent. Increasing the recycling rate of these and other commodities by 10 percent would save enough energy annually to heat 74,350 million American homes, provide the required electricity for 2.5 million Americans, and save about $771 million in avoided costs for barrels of crude oil.

A coalition of over 35 industry, governmental, and environmental organizations support the RISE Act, including the National Recycling Coalition, Inc., US Conference of Mayors/Municipal Waste Management Association, National Solid Wastes Management Association, Glass Packaging Institute, Institute of Scrap Recycling Industries, Inc., American Beverage Association.


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