Program

Production Tax Credit for Municipal Solid Waste

Category

Energy - Alternative

Subsidy Type

Tax Expenditure

Committees of Jurisdiction

House Committee on Ways and Means, Senate Finance Committee

$120 FY 23 Budget Score (in mil.)
$480 FY 23-32 Budget Score (in mil.)

Renewable electricity production tax credits (PTC) provide a per-kilowatt-hour (kWh) tax credit for electricity generated from certain renewable sources for the first 10 years of a project under Section 45 of the tax code. In the case of facilities that use municipal solid waste as a feedstock to produce electricity, the PTC is 1.3 cents per kWh.

The Inflation Reduction Act of 2022 extended the renewable electricity PTC through the end of 2024, after which the PTC will be replaced with a new clean electricity production tax credit that only qualifies ‘zero emission’ sources. Municipal Solid Waste is not expected to qualify for this new credit.

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