Senator Jeffords Introduces Legislation To Boost Recycling Tax Credits
Contact: Robert Peoples, Carpet America Recovery Effort (706) 428-2115
Dalton, GA, July 25, 2006
Dear CARE Supporters
I want to make you aware of new federal legislation that has been introduced which will facilitate your efforts to bring carpet recycling on-line. Recycling bill (S. 3654, the RISE Act – Recycling Investment Saves Energy) was introduced by Vermont’s Senator Jim Jeffords on July 13, 2006. The bill benefits recycling stakeholders and the carpet recovery effort by offering tax incentives toward the purchase of reuse or recycling equipment.
The bill offers a 15% tax credit OR 50% depreciation deduction for the purchase of qualified reuse and recycling equipment. The bill states “any machinery and equipment (not including buildings or real estate) including software necessary to operate such equipment, which is used exclusively to collect, distribute or recycle qualified reuse and recyclable materials” is covered. Recyclable materials include “scrap plastic, scrap textiles, scrap rubber, scrap packaging, recovered fiber, scrap ferrous and nonferrous metals or electronic waste.”
CARE is supporting the bill with several other recycling organizations like the National Recycling Coalition and the Steel Recycling Association in an effort to show constituent support for the ratification of this recycling legislation. I encourage you to support this legislative initiative, which expedites the acquisition of the required capital needed to achieve the 40% carpet recovery goal of CARE. Below you will find an article that provides details. A generic letter (Micrsoft Word Doc 27KB) of support is available which you can download and use to send to your congressional contacts. You can also contact your congressional contacts at the following links:
Executive Director, CARE
Senator Jim Jeffords
July 13, 2006
WASHINGTON, DC — U.S. Senator Jim Jeffords, I-Vt., today introduced the Recycling Investment Saves Energy (RISE) Act of 2006, which offers tax incentives that will create jobs, conserve energy and expand America’s recycling capacity.
The bill, cosponsored by Sen. Tom Carper, D-Del., Co- Chair of the Senate Recycling Caucus, aims to reverse the declining trend in recycling rates, and the resulting energy loss, by providing incentives for greater collection, distribution and recycling of quality recyclable materials.
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. These 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 state-of-the-art recycling equipment and innovative technology. Additionally, the legislation will allow recycling facilities to be eligible for tax-exempt bond financing.
“This bill will help capture the significant energy savings available through greater recycling,” said Jeffords, the ranking member of the Senate Environment and Public Works Committee. “The RISE Act will also advance environmental goals, including lessening the need for new landfills and reducing greenhouse gas emissions.”
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 broad 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.
A Copy of the bill can be found at: