Michigan Beer & Wine Wholesalers Association applauds House vote for bottle bill tax credit legislation

LANSING, Mich. – The Michigan Beer & Wine Wholesalers Association (MB&WWA) today applauded bipartisan support in the state House for legislation that would invest in Bottle Bill infrastructure and ensure the system operates efficiently for all Michiganders.

House Bill 5546, sponsored by Rep. Will Snyder, D-Muskegon, passed the House 103-7 with overwhelming bipartisan support and now moves to the Senate for consideration.

“Distributors invest over $60 million to recycle approximately two billion containers per year on behalf of the State of Michigan,” said Brett Visner, vice president of public affairs for the MB&WWA. “Sustained reinvestment in the Bottle Bill is crucial for maintaining infrastructure and system efficiency. House Bill 5546 will help accomplish that, providing Michigan beer and soft drink distributors a tax credit equal to a half-cent per returnable container sold.”

Since 1989, when the Legislature diverted unclaimed deposits to the Department of Environment, Great Lakes, and Energy (EGLE) and Michigan retailers, no funds have been reinvested into the Bottle Bill system's infrastructure. The total cost of operating the Bottle Bill has been borne by distributors. In 2008, a tax credit covering 28.5% of the costs associated with the Bottle Bill was established, but this credit was eliminated in 2011 with the phasing out of the Michigan Business Tax.

“With return rates dropping to historic lows, it is time to get serious about a long-term funding solution,” Visner said. “The strong bipartisan support of House Bill 5546 is significant and a crucial step toward restoring Michigan’s Bottle Bill to its former status as best in the nation.”

House Bill 5546 creates a tax credit based on the number of recyclable containers sold by a distributor and makes the State of Michigan a partner in the restoration and long-term viability of Michigan’s Bottle Bill.