Recycling Tax breaks in the Energy Bill

[RecycleMichael]

The Senate Finance Committee recognized that recycling saves energy and has added some tax incentives for private companies who buy recycling equipment.

We need more investment in recycling and maybe this will spur some Tulsa entrepreneurs...

I always preach about all the jobs in recycling and how it saves landfill space, but the fact that recycling reduces dependence on non-renewable energy sources helps as well.


JEFFORDS RECYCLING TAX INCENTIVE
APPROVED BY FINANCE COMMITTEE

WASHINGTON D.C. - An amendment authored by U.S. Sen. Jim Jeffords, I -Vt., to provide almost $100 million in tax incentives for recyclers was
adopted today 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.  

Jeffords, a longtime advocate of recycling, said, "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."

"Businesses that rely on recycled feedstock increasingly are finding it difficult to obtain the quality and quantity of recycled materials
needed. A tax credit for the purchase of recycling equipment will reduce collecting, sorting and processing costs and thereby bolster the struggling recycling industry. By preserving and expanding the nation's
recycling infrastructure, this amendment will promote energy savings,increase manufacturing, and job growth," continued Jeffords, a senior
member of the Committee.

The amendment is supported by a broad coalition including the paper, glass, plastic, steel and aluminum industries, the US Conference of
Mayors, the National League of Cities, the National Recycling Coalition and Sierra Club.

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.  

The amount of lost energy from throwing away recyclable commodities such as aluminum cans and newspapers is equivalent to the annual output of 15 power plants. The energy savings applies to all recycling sectors:

*Aluminum -Recycling of aluminum cans saves 95% of the energy required to make the same amount of aluminum from its virgin source. One ton of recycled aluminum saves 14,000 kilowatt hours (Kwh) of energy, 40 barrels of oil, 238 million Btu's of energy, and 10 cubic yards of landfill space.

*Newsprint -One ton of recycled newsprint saves 601 Kwh of energy, 1.7 barrels of oil (71 gallons),10.2 million Btu's of energy, 60 pounds of air pollutants from being released, 7,000 gallons of water, and 4.6 cubic yards of landfill space.

*Office Paper - One ton of recycled office paper saves 4,100 Kwh of energy, 9 barrels of oil, 54 million Btu's of energy,60 pounds of
air pollutants from being released, 7,000 gallons of water, and 3.3 cubic yards of landfill space.

*Plastic - One ton of recycled plastic saves 5,774 Kwh of energy, 16.3 barrels of oil, 98 million Btu's of energy, and 30 cubic yards of landfill space.  

*Steel - One ton of recycled steel saves 642 Kwh of energy, 1.8 barrels of oil, 10.9 million Btu's of energy, and 4 cubic yards of landfill space.  

*Glass - One ton of recycled glass saves 42 Kwh of energy, 0.12 barrels of oil (5 gallons), 714,000 Btu's of energy, 7.5 pounds of air
pollutants from being released, and 2 cubic yards of landfill space. Over 30% of the raw material used in glass production now comes from
recycled glass.