Washington — In his proposed federal budget for fiscal year 2006, President George W. Bush includes an extension of the Section 45 tax credits for landfill-gas-to-energy (LFGE) projects. 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 applies to electric projects only. The inflation-adjusted credit rate for 2004 was .9 cents per kilowatt hour (kWh). The credit is good for five years after the project begins operating.
Bush proposes extending the placed-in-service deadline until Dec. 31, 2007.