Power plants that burn waste fuels qualify for more rapid tax depreciation and tax-exempt financing.

The IRS put on its business plan for the 12 months starting July 1 that it will take another look at how it defines “waste” for federal income tax purposes. The current definition is material that is useless, unwanted or discarded and for which no one would pay anything in the place where the material is located. The Bush administration is under pressure from the recycling industry to treat as waste corrugated cardboard and other materials for which recyclers pay small amounts of money to buy in large bundles.

The lawyer assigned to the issue at the US Treasury Department said no decisions have been made about direction — or even whether to change the definition — but that the government will listen to the recyclers’ arguments.