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RE: Tax exemption for environmental equipment



I have to agree wholeheartedly with Burt (and I've had several cups of
java).  We (Prof. Robert Lake of Rutgers) did a good study on tax
incentives and what kind would promote P2. The results showed that
existing tax incentives for similar purposes (energy conservation and
environmental treatment/control) were rarely, if ever, used. However,
tax incentives when combined with a strong outreach and technical
assistance effort could be beneficial.
Unfortunately, I do not have an electronic copy of the report but can
send hard copies if anyone is interested.
Melinda Dower
Office of Pollution Prevention and Right to Know
N.J. Dept. of Environmental Protection
(609) 292-1122

>>> "Burton Hamner" <wbhamner@cleanerproduction.com> 09/17/03 10:05AM
>>>
I am curious about this whole concept.  Does anyone have evidence that
a tax
exemption for enviro equipment, or P2 technologies, really causes a
reasonable number of companies (as in, more than 2 or 3), to actually
make
the investments that they would not make otherwise?  The benefits of
the tax
exemptions are not very significant compared to the whole cost, and
the
obstacles to investing in such equipment are significant and well
known.
Considering how much effort is needed simply to get a tax exemption
like
this in place and to implement it (with the review process for
applicatoins
etc), unless a LOT of companies are inspired to make investments that
they
would really not make otherwise (which is of course hard to
demonstrate), I
wonder if tax exemptions really make any difference.  The whole idea
of
market based mechanisms is that they move the market, not just one or
two
firms who would make the investment anyway and figure they can make a
little
extra money via the tax credit.  Does anyone have any data that shows
how
many  firms  made new investments in P2 or PC, stimulated by these tax
credits?  Without such evidence, I am disinclined to believe that they
are
worth the effort.  And yes, I have already had my coffee so I am not
just
being cranky this morning.

Burton Hamner, MBA, MMA
Professor, Universidad de Pacifico
Avenida Salaverry 2020
Jesus Maria, Lima 11, Peru
511-219-0100, x2354
fax 511-219-0135
email wbhamner@cleanerproduction.com 
web http://www.cleanerproduction.com 




-----Mensaje original-----
De: owner-p2tech@great-lakes.net
[mailto:owner-p2tech@great-lakes.net]En 
nombre de Sobin Rodney
Enviado el: Miércoles, 17 de Septiembre de 2003 08:49 a.m.
Para: Tammy Allen; p2tech@great-lakes.net 
Asunto: RE: Tax exemption for environmental equipment


Tammy--

It may be a bit out-of-date but back in '95 we put together a list of
federal tax provisions that encourage innovative technologies.  The
list is
in U.S. Congress, Office of Technology Assessment, Innovation and
Commercialization of Emerging Technologies ,OTA-BP-ITC-165, September
1995
on page 93.  The report is available via the OTA archives at
http://www.wws.princeton.edu/~ota/   I've also appended an image of
the
table below but the image quality is not too good.

Many of the provisions were/are energy related.  Again, be careful
because
the list is old so it may be worth looking at the US Code citations to
see
if they're still in force.  I'm not aware of any special credit or
deduction
at the federal level that would apply to purchase or installation of
pollution prevention processes or pollution control equipment.

In case you're interested, in Virginia there are some state tax credits
and
exemptions--sales tax exemption for pollution control equipment; income
tax
credits for recycling equipment, oil burning equipment, and for
certain
pollution control and disposal equipment. ... Not exactly the vanguard
of P2
policy is it?
See http://www.deq.state.va.us/waste/ and click on "Tax Credit" on the
lower
left part of the page

I hope this is useful.

Rod

Rodney Sobin
Air Permitting Program Coordinator
Virginia Department of Environmental Quality
Postal: P.O. Box 10009, Richmond, VA 23240-0009
Street:  629 E. Main St., Richmond, VA 23233-2429
Tel. 804-698-4382	fax 804-698-4264  Rsobin@deq.state.va.us 
DEQ Innovative Technology http://www.deq.state.va.us/innovtech 
Chesapeake Bay Program Innovative Technology
http://www.chesapeakebay.net/innovative.htm 
<http://www.chesapeakebay.net/innovative.html>
Virginia Environmental Services Network http://www.vesn.org 




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