Air Pollution Control Equipment

Many states within the United States are now offering tax exemption certificates on emission equipment; however most states will require:

• That the equipment is designed and operated primarily for the control, capture and/or removal of pollutants from the air,
• is suitable for the application and reasonably adequate, and
• meets the intent and purposes of the Tax Exemption

Often times the state will require the evaluation of the equipment covered by the application to determine that the equipment meets the definition of an air pollution control facility. This definition is mean equipment installed or acquired for the principal purpose of controlling or disposing of air emissions which, if released, would render the air harmful or damaging to public health or to property within the state. This includes process changes made to production equipment so as to comply with the requirements of the act and to the fuel burner of a fuel burning system which has been installed, modified, or converted to effect air emission control.

Some equipment may be exempted from the referenced definition as any equipment acquired or installed for the benefit of personnel or of a business.

Generally, equipment which meets the definition of an air pollution control facility as falls under one of the following categories:

  • Equipment which essentially removes air contaminants from a gas-stream being exhausted to the atmosphere (e.g., bag Houses, scrubbers, electrostatic precipitators, thermal oxidizers, etc.)
  • Equipment which prevents would-be air contaminants from being emitted to the atmosphere (e.g., dust regulating enclosures, etc.)
  • Equipment which changes the sources, thus eliminating the generation of the air contaminant (e.g., process change or burner conversion)
  • Equipment which is secondary to the operation of the emission facility (e.g., regenerative thermal oxidizer, dust hoppers, waste conveyors, monitors, stacks, fans and motors)
  • When you are evaluating your specific air pollution control equipment installation, most States use these general guidelines to determine whether a piece of equipment will meet the definition of an air pollution control facility. It is important to remember that:

  • Exceptions to your State Guidelines may occur,
  • Air pollution control facility means equipment installed or acquired for the primary purpose of controlling or disposing of plant emissions,
  • “Does not mean equipment which is for benefit of personnel or business,
  • For problematical situations in which the equipment serves a number of functions, only one of which is air pollution control, the State may apply an incremental cost approach. In such situations, the incremental cost entitled for tax exemption is considered to be the difference between the actual cost of the equipment and the predicted cost of the equipment which could perform all of the functions other than emission control.
  • Leave a Reply