Chemical Recyclers Ask IRS for Asset Tax Deduction Eligibility

Companies that recycle chemicals should be allowed to deduct their property costs the first year they’re placed in service, an industry group told the IRS.

The American Chemical Council in a letter dated April 20th, but released by the government Wednesday, said that chemical recycling should be included in a list of production activity that would qualify a property for bonus depreciation under Section 168(n) of the tax code.

The ACC was responding to the IRS’s request for comment in previous guidance (Notice 2026-16) on bonus depreciation.

The deduction was reinstated by Republicans’ $3.4 trillion tax law ...