Amortization for Certain Pollution Control Facilities


Energy, Energy - Fossil Fuels

Subsidy Type

Tax Expenditure

Committees of Jurisdiction

House Committee on Ways and Means, Senate Finance Committee

$400 FY 23 Budget Score (in mil.)
$4,600 FY 23-32 Budget Score (in mil.)

Amortization for certain pollution control facilities provides an option to amortize investments in pollution control equipment for coal-fired electric generation plants over seven years. Amortization is a method of depreciation that recovers investment costs evenly (i.e., straight line depreciation) over the recovery period. The standard recovery period for the conventional type of electric generating equipment under the Modified Accelerated Cost Recovery System (MACRS) is either 15 or 20 years, depending on the type of equipment. Qualifying pollution control equipment includes scrubber systems, particulate collectors and removal equipment (such as electrostatic precipitators), thermal oxidizers, vapor recovery systems, low nitric oxide burners, flare systems, bag houses, cyclones and continuous emission monitoring systems. In order to qualify, the pollution control equipment needs to have been placed in service after April 11, 2005. This provision was enacted in the Energy Policy Act of 2005.

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