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. |
