Washington – Legislation to create federal tax credits of up to 30% for projects that increase water efficiency in manufacturing plants has been introduced in the U.S. Senate by Sen. Jeff Bingaman, D-NM.
The bi-partisan proposal is co-sponsored in the Senate by Sens. Olympia Snowe, R-ME, and Dianne Feinstein, D-CA.
Called the Expanding Industrial Energy and Water Efficiency Incentives Act of 2012, the bill would amend the Internal Revenue Code to incent investments in reuse, recycling, and efficiency measures related to process, sanitary, and cooling water for industrial and manufacturing facilities. Tax credits would range from 10% for projects that increase efficiency between 25% and 49% up to a 30% tax credit for projects that increase efficiency by 75% or more.
The Bingaman plan also proposes new or revised tax credits for increasing the energy efficiency of manufacturing sites.
“This bill offers focused, short-term incentives to help the industrial and manufacturing sectors make the next generation of efficiency investments necessary for these sectors to remain globally competitive and continue to push innovation,” Bingaman said in introducing his proposal.
Feinstein called the water efficiency tax credits “the sort of policy we desperately need to reduce water waste while supporting our industrial base.”
The bill was sent to the Senate Finance Committee, where Bingaman chairs the Subcommittee on Energy, Natural Resources and Infrastructure. No hearings have so far been scheduled.