PRC Lauds Passage of Amendment to Ensure Paper is Not Destroyed

For Immediate Release:

For over 20 years, the Paper Recycling Coalition has dedicated time and resources to ensuring access to a clean fiber supply. Members of the PRC are pleased that when the American Taxpayer Relief Act of 2012 was passed into law it included language amending Section 45 of the tax code to prevent the use of tax incentives for burning commonly recycled paper for energy recovery. The Section 45 amendment, originally introduced as Senate Bill 2143, was sponsored by Senator Debbie Stabenow (D-MI) and cosponsored by Senators Chambliss (R-GA), Pryor (D-AR), Isakson (R-GA), Boozman (R-AR), and Carper (D-DE). The PRC appreciates their support on this highly important industry issue.

 

We are pleased that because of Senator Stabenow’s leadership, Congress has recognized the importance of preventing incentives for burning recyclable paper and paperboard. Many paper products can be recycled over and over again, whereas when it is burned it is gone forever, and along with it the many environmental and economic attributes of recycling paper. Because waste-to-energy plants will not be able to use this tax credit to burn commonly recycled paper, the non-partisan Congressional Budget Office estimated that this provision will save the government $75 million over 10 years.

 

David Scheible, Chief Executive Officer of Graphic Packaging International stated:  “Senator Stabenow clearly understands the challenges and importance of the free market and recognizes that government subsidies to burn paper which could be recycled distort that market.  Her priority is jobs, jobs, jobs and this bill helps to ensure that jobs stay in the paper recycling mills in Michigan and throughout the country. This bill showcases the Senator’s acute sense of fairness, and environmental and fiscal responsibilities.”