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Legislation Further Limits Tax Benefits for Dirty MRFs

ISRI recently agreed to support additional restrictions on certain tax benefits used by waste-to-energy facilities that use municipal solid waste which contains recyclable materials to generate electricity.

S2371 was introduced in the U.S. Senate by Senator Debbie Stabenow (D-MI) and co-sponsored by the Recycling Caucus co-chairs, Senators Tom Carper (D-DE) and John Boozman (R-AR). This technical legislation to modify the definition of municipal solid waste would close a loop in the IRS section 45 code by eliminating the tax benefit for the recyclable paper portion of the municipal solid waste used as fuel by the waste-to-energy facility. 

In 2012, ISRI joined with paper recyclers to support similar legislation that restricted the tax benefits for waste-to-energy facilities that used recyclable paper for fuel. However, further technical modifications were needed to ensure that waste-to-energy facilities did not realize the tax benefits for using recyclable paper in the municipal solid waste. ISRI has long opposed tax benefits that disrupt the recycling supply chain or provide incentives for virgin over recycled materials by removing the cost benefits for recycled materials. Instead, ISRI supports efforts to help promote recycling, purchase recycling equipment, and increase recycled content in new products.

For more information about S. 2371, please contact Billy Johnson

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