As the end of the year approaches, some major tax credits for renewable energy are set to expire. As part of the American Recovery and Reinvestment Act of 2009, Section 1603, operations that qualified for Section 45 and 48 tax credits may elect to receive grant payments worth up to 30% the capital cost of the facility. WTE and LFG operations both qualify if owned by a tax-payer. Without renewal this program will expire on December 31, 2011.
On November 30, SWANA as a member of the 1603 Coalition sent a letter to Congress in support of an extension of the 1603 grant program. To date twenty-six solid waste operations have taken advantage of this program, amounting to over fifty million dollars in grants, a significant investment in our industry.
As the deadline grows near, congressional support has been increasing. On Wednesday, December 7, thirty-four Senators sent a letter to requesting the programs extension to the chamber’s Democratic and Republican leadership. In the House, eighty-eight members signed on to a similar letter to House leadership.
It is unclear at this point if the extension will succeed. We will continue to track this issue and keep members informed of any developments.
A copy of the 1603 Coalition letter can be found here.