SWANA Supported Tax Credits Extended

In the early morning of December 9, Congress passed its final piece of legislation for the year, the "Tax Relief and Health Care Act of 2006," which includes a one year extension of the Section 45 renewable energy production tax credit originally included in Energy Policy Act H.R. 6, signed earlier this year by President Bush. The Solid Waste Association of North America (SWANA) was a major supporter of H.R. 6, and applauds Congress for acting to extend the tax credit so quickly. The bill, H.R. 6111, has been sent to the President, who is expected to sign it.

The Section 45 credit, originally set to expire December 31, 2007, applies to the placed-in-service date for facilities, which will now extend through December 31, 2008. "Extending the renewable energy tax credit a full year before its expiration is an important first step towards securing long term tax extensions in the next Congress," remarked SWANA Executive Director and CEO, John H. Skinner, Ph.D., who added, "Including this provision in the final act of this Congress shows a growing support for renewable energy and an industry that is energized and poised to make even larger steps next year. SWANA will continue to push for long term tax credit extensions, which are seen as vital to initiating and funding current and future landfill gas and waste-to-energy projects."

Facilities qualifying for the tax credits include landfill gas facilities; waste-to-energy facilities; wind facilities; closed-loop biomass facilities; open loop biomass facilities; geothermal facilities; small irrigation power facilities; and qualified hydropower. H.R. 6111 also extends the credit to holders of Clean Renewable Energy Bonds (CREBs) by one year, now set to expire December 31, 2008. In addition, the bill adds $400 million to the CREBs' nation limitation, setting the cap for the program at $1.2 billion.

Other energy measures in the bill include a deduction for energy efficient commercial buildings; a credit for new energy efficient homes; a credit for residential energy efficient property; a credit for investment in clean coal facilities; and a special depreciation for cellulose biomass ethanol plant property.

About SWANA:

For over 40 years, SWANA, The Solid Waste Association of North America, has been the leading professional association in the solid waste management field. SWANA's mission is "to advance the practice of environmentally and economically sound management of municipal solid waste." SWANA serves over 7,500 members and thousands more industry professionals with technical conferences, certifications, publications and a large offering of technical training courses.