WM · 10-Q · 2026Q3 · Full report

Tax Legislation

WASTE MANAGEMENT INC · 2026-10-28 · Importance 46 · Surprise 42 · From source text

The Inflation Reduction Act of 2022 provides tax incentives for renewable energy production and other climate actions. The Company expects cumulative Section 48 investment tax credits of $400 million to $425 million; $309 million was recognized in 2023–2025, with the balance anticipated in 2026 and 2027. Following IRS proposed guidance issued in February 2026 on the Section 45Z clean fuel production tax credit, the Company expects cumulative benefits of up to $225 million through 2029, subject to estimates and assumptions. The alternative fuel tax credit that generated approximately $60 million of annual pretax benefit expired at the end of 2024, with no future benefit absent further legislative action.

Key facts

• Following February 2026 IRS proposed guidance clarifying Section 45Z clean fuel production tax credit qualification, Waste Management expects cumulative credit benefits of as much as $225 million through 2029, dependent on estimates and assumptions. source
• Waste Management expects cumulative Section 48 investment tax credit benefits of $400 million to $425 million; $309 million was recognized from 2023 through 2025, with the remainder anticipated in 2026 and 2027. source
• Waste Management expects Section 48 cumulative tax credit benefits of $400 million to $425 million, with the unrecognized remainder expected in 2026 and 2027. source
• Waste Management secured approximately $60 million of annual pretax benefit from IRA alternative fuel tax credits in 2024, recorded as a reduction in operating expense; the credit expired at the end of 2024 and provides no future benefit without further legislation. source

Impact estimates