Trenton – In an effort to incentivize recycling facilities to continue to grow within the state, the Senate Environment and Energy Committee approved legislation sponsored by Senators Troy Singleton and Bob Smith, which would provide exemptions to certain energy-related taxes.
Singleton, Smith Bill To Provide Tax Incentives To Recycled And Recovered Material Manufacturing Facilities Advances
“Plastic waste is an issue that threatens the well-being of the planet,” said Senator Singleton (D-Burlington). “Our recycling facilities are integral partners in helping to combat this environmental threat. By providing these facilities with tax incentives, our hope is that both existing and new businesses can continue to grow within this market, ultimately decreasing plastic waste throughout the state.”
The bill, S-3287, would exempt qualifying recycled and recovered materials manufacturing facilities from the sale or use of energy utility services tax, for an initial period of seven years. The Division of Taxation would be required to annually review the economic feasibility of continuing to provide qualifying facilities with the exemptions and to submit their recommendations to the Legislature as to whether such exemptions should be continued.
“Recyclable commodity markets are the missing piece needed to solve the key outstanding issues that remain with recycling,” said Senator Smith (D-Middlesex/Somerset), Chair of the Senate Environment and Energy Committee. “These facilities recycle plastic waste in a manner that creates a truly circular market for recycled materials. Through creating tax incentives, this market will be able to diminish plastic waste while creating useful everyday products.”
The bill was released by the committee by a vote of 3-1.