WM · 10-Q · 2026Q2 · Full report
Tax Legislation
WASTE MANAGEMENT INC · 2026-07-29 · Importance 40 · Surprise 42 · From source text
Waste Management continues to assess the Inflation Reduction Act of 2022, including credits for renewable energy production, carbon capture and clean fuels. The alternative fuel tax credit generated approximately $60 million of annual pre-tax benefit in 2024 but expired at the end of 2024 absent further legislative action. The Company expects cumulative Section 48 investment tax credit benefits of $400 million to $425 million, including $309 million recognized from 2023 through 2025 and the remainder expected in 2026 and 2027. Following February 2026 IRS proposed guidance on Section 45Z, Waste Management expects up to $150 million of cumulative clean fuel production tax credit benefits through 2029, subject to estimates and assumptions.
Key facts
- WASTE MANAGEMENT expects its cumulative benefit from the Section 48 investment tax credit to be between $400 million and $425 million, $309 million of which was recognized between 2023 and 2025 with the remainder anticipated to be realized in 2026 and 2027. source
- WASTE MANAGEMENT expects its cumulative benefit from the Section 45Z clean fuel production tax credit to be as much as $150 million through 2029, subject to estimates and assumptions. source
- WASTE MANAGEMENT recognized approximately $60 million of annual pre-tax benefit through the Inflation Reduction Act related to alternative fuel tax credits in 2024; that alternative fuel credit expired at the end of 2024. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | probable | +0.8% | WASTE MANAGEMENT expects its cumulative benefit from the Section 48 investment tax credit to be between $400 million and $425 million,… |
| cash | positive | probable | +0.1% | WASTE MANAGEMENT expects its cumulative benefit from the Section 48 investment tax credit to be between $400 million and $425 million,… |
| net_income | positive | contingent | — | WASTE MANAGEMENT expects its cumulative benefit from the Section 45Z clean fuel production tax credit to be as much as $150 million… |