Section 45 tax credits for landfill-gas-to-energy (LFGE) projects soon could be extended if President George W. Bush has his way. In his proposed federal budget for fiscal year 2006, Bush wants to extend the placed-in-service dates for LFGE projects through Dec. 31, 2007.
The credits currently apply to LFGE and waste-to-energy (WTE) facilities that are placed in service between Oct. 23, 2004, and Dec. 31, 2005, and only apply to projects that generate electricity. The inflation-adjusted credit rate for 2004 was 0.9 cents per kilowatt hour. The credit is paid out over five years.
The credits were enacted last fall as part of the American Jobs Creation Act of 2004. The solid waste industry has been urging legislators to extend the credits since they were created. However, Bush's proposal does not contain a placed-in-service extension for WTE projects.