Senator Introduces Recycling Tax Incentive Amendment

An amendment to a Senate bill, authored by U.S. Senator Jim Jeffords (I-VT), that aims to provide close to $100 million in tax incentives for recyclers was adopted by the Senate Finance Committee as part of the tax package for the energy bill. The targeted 15 percent tax credit for equipment used in the processing and sorting of recyclable materials will increase quantity and quality of recyclable materials collected.

"By investing in recycling, we can save a significant amount of energy. This national investment also is necessary to reverse the declining recycling rate of many consumer commodities, including aluminum, glass and plastic, which are near historic lows. This amendment will help businesses that rely on recycled feedstock obtain the quality and quantity of recycled materials needed," Jeffords said

" By preserving and expanding the nation's recycling infrastructure, this amendment will promote energy savings, increase manufacturing, and job growth," Jeffords added.

The energy tax package will be merged with the energy bill currently being considered on the Senate floor. The Joint Committee on Taxation estimates that the Jeffords amendment will provide the recycling industry with tax relief worth $52 million over five years and $99 million over 10 years.