Tax Reform May Help Recyclers

Recyclers could benefit from the tax reform bill that has been signed by President Donald Trump.

The reforms include a reduction in the corporate tax rate as well as changes in how certain types of income and expenses are handled.

Legislators lowered the corporate tax rate to 21 percent from 35 percent. They also reduced the amount of taxes that non-corporations, such as partnerships, would pay as pass-through companies.

Additional takeaways for the recycling industry include the following, according to Resource Recycling.

• Immediate and full expensing is allowed on qualified equipment purchases from Sept. 2017 through 2013 before expensing allowance gradually phases out in subsequent years. Certainrecycling industry equipment should qualify, according to the Institute of Scrap Recycling Industries (ISRI).
• Cap for deducting qualified asset purchases by small businesses is doubled to $1 million.
• Corporate alternative minimum tax is repealed.
• Tax-exempt private activity bonds remain. Recycling facilities often use such bonds for qualifying capital investments, Resource Recycling reported.

The House and the Senate approved the tax bill on Dec. 19 and President Trump signed it on Dec. 22. You can click here to read the Tax Cuts and Jobs Act.