The State of Colorado is now offering tax breaks on machinery purchases made by recycling companies and remanufacturers.
State Bill 16-124 says all machinery and equipment purchased for the use of processing recovered materials is exempt from sales and use tax. This type of tax exemption is already in place for manufacturing equipment.
The legislation was signed into law on June 8.
For recycling entities to receive the tax breaks they must be registered with the Colorado Department of Public Health and Environment. The tax break can be redeemed at point of sale or through a rebate. The tax exemption only applies to purchases made after July 1, 2016 and consumers have a three-year statute of limitations for requesting a refund.
The Colorado Association for Recycling lobbied for two years to get this bill passed.
