HR 5659 IHCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to allow a credit against income tax for recycling or remanufacturing equipment.CommentsClose CommentsPermalink

March 31, 2008

Mr. ENGLISH of Pennsylvania (for himself, Mr. SESSIONS, Mr. WALSH of New York, Mr. CHABOT, Mr. WILSON of South Carolina, and Mr. SENSENBRENNER) introduced the following bill; which was referred to the Committee on Ways and MeansCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to allow a credit against income tax for recycling or remanufacturing equipment.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. CREDIT FOR RECYCLING OR REMANUFACTURING EQUIPMENT.

(a) In General- Section 46 of the Internal Revenue Code of 1986 (relating to amount of investment credit) is amended by striking `and' at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting `, and', and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(5) the reclamation credit.'.CommentsClose CommentsPermalink





(b) Reclamation Credit- Subpart E of part IV of subchapter A of chapter 1 of such Code (relating to rules for computing investment credit) is amended by inserting after section 48B the following new section:CommentsClose CommentsPermalink

`SEC. 48C. RECYCLING OR REMANUFACTURING EQUIPMENT.

`(a) In General- For purposes of section 46, the reclamation credit for any taxable year is 20 percent of the basis of each qualified reclamation property placed in service during the taxable year.CommentsClose CommentsPermalink





`(b) Qualified Reclamation Property-CommentsClose CommentsPermalink





`(1) IN GENERAL- For purposes of this section, the term `qualified reclamation property' means property--CommentsClose CommentsPermalink





`(A) which is qualified recycling property or qualified remanufacturing property,CommentsClose CommentsPermalink





`(B) which is tangible property (not including a building and its structural components),CommentsClose CommentsPermalink





`(C) with respect to which depreciation (or amortization in lieu of depreciation) is allowable,CommentsClose CommentsPermalink





`(D) which has a useful life of at least 5 years, andCommentsClose CommentsPermalink





`(E) which is--CommentsClose CommentsPermalink





`(i) acquired by purchase (as defined in section 179(d)(2)) by the taxpayer if the original use of such property commences with the taxpayer, orCommentsClose CommentsPermalink





`(ii) constructed by or for the taxpayer.CommentsClose CommentsPermalink





`(2) DOLLAR LIMITATION-CommentsClose CommentsPermalink





`(A) IN GENERAL- The basis of qualified reclamation property taken into account under paragraph (1) for any taxable year shall not exceed $10,000,000 for a taxpayer.CommentsClose CommentsPermalink





`(B) TREATMENT OF CONTROLLED GROUP- For purposes of subparagraph (A)--CommentsClose CommentsPermalink





`(i) all component members of a controlled group shall be treated as one taxpayer, andCommentsClose CommentsPermalink





`(ii) the Secretary shall apportion the dollar limitation in such subparagraph among the component members of such controlled group in such manner as he shall by regulation prescribe.CommentsClose CommentsPermalink





`(C) TREATMENT OF PARTNERSHIPS AND S CORPORATIONS- In the case of a partnership, the dollar limitation in subparagraph (A) shall apply with respect to the partnership and with respect to each partner. A similar rule shall apply in the case of an S corporation and its shareholders.CommentsClose CommentsPermalink





`(D) CONTROLLED GROUP DEFINED- For purposes of subparagraph (B), the term `controlled group' has the meaning given such term by section 1563(a), except that `more than 50 percent' shall be substituted for `at least 80 percent' each place it appears in section 1563(a)(1).CommentsClose CommentsPermalink





`(c) Certain Progress Expenditure Rules Made Applicable- Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this subsection.CommentsClose CommentsPermalink





`(d) Definitions- For purposes of this section--CommentsClose CommentsPermalink





`(1) QUALIFIED RECYCLING PROPERTY- The term `qualified recycling property' means equipment used exclusively to collect, distribute, or sort used ferrous or nonferrous metals. The term does not include equipment used to collect, distribute, or sort precious metals such as gold, silver, or platinum unless such use is coincidental to the collection, distribution, or sorting of other used ferrous or nonferrous metals.CommentsClose CommentsPermalink





`(2) QUALIFIED REMANUFACTURING PROPERTY- The term `qualified remanufacturing property' means equipment used primarily by the taxpayer in the business of rebuilding or remanufacturing a used product or part, but only if--CommentsClose CommentsPermalink





`(A) the rebuilt or remanufactured product or part includes 50 percent or less virgin material, andCommentsClose CommentsPermalink





`(B) the equipment is not used primarily in a process occurring after the product or part is rebuilt or remanufactured.CommentsClose CommentsPermalink





`(e) Coordination With Rehabilitation and Energy Credits- For purposes of this section--CommentsClose CommentsPermalink





`(1) the basis of any qualified reclamation property shall be reduced by that portion of the basis of any property which is attributable to qualified rehabilitation expenditures (as defined in section 47(c)(2)) or to the energy percentage of energy property (as determined under section 48(a)), andCommentsClose CommentsPermalink





`(2) expenditures taken into account under either section 47 or 48(a) shall not be taken into account under this section.'.CommentsClose CommentsPermalink





(c) Special Basis Adjustment Rule- Paragraph (3) of section 50(c) of such Code (relating to basis adjustment to investment credit property) is amended by inserting `or reclamation credit' after `energy credit'.CommentsClose CommentsPermalink





(d) Clerical Amendment- The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 48B the following new item:CommentsClose CommentsPermalink





`Sec. 48C. Recycling or remanufacturing equipment.'.CommentsClose CommentsPermalink





(e) Effective Date- The amendments made by this section shall apply to property placed in service on or after January 1, 2007.CommentsClose CommentsPermalink