S 1587 ISCommentsClose CommentsPermalink

To amend the Internal Revenue Code to allow a special depreciation allowance for reuse and recycling property and to provide for tax-exempt financing of recycling equipment, and for other purposes.CommentsClose CommentsPermalink

June 11, 2007

Ms. SNOWE (for herself, Mr. CARPER, Mr. ISAKSON, Mr. KERRY, Mr. OBAMA, Mr. LIEBERMAN, Mrs. LINCOLN, and Mr. BAYH) introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

To amend the Internal Revenue Code to allow a special depreciation allowance for reuse and recycling property and to provide for tax-exempt financing of recycling equipment, and for other purposes.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. SHORT TITLE.

This Act may be cited as the `Recycling Investment Saves Energy' or the `RISE Act'.CommentsClose CommentsPermalink

SEC. 2. FINDINGS.

The Senate finds the following:CommentsClose CommentsPermalink





(1) Recycling means business in the United States, with more than 56,000 reuse and recycling establishments that employ over 1,100,000 people, generating an annual payroll of nearly $37,000,000,000, and grossing over $236,000,000,000 in annual revenues. In 2005, recycling scrap materials accounted for $15,700,000,000 in exports for the United States. On a per-ton basis, sorting and processing recyclables alone sustain 10 times more jobs than landfilling or incineration.CommentsClose CommentsPermalink





(2) By reducing the need to extract and process virgin raw materials into manufacturing feedstock, reuse and recycling helps achieve significant energy savings. For example:CommentsClose CommentsPermalink





(A) Taken together, the amount of energy wasted from not recycling aluminum and steel cans, paper, printed materials, glass, and plastic equals the annual output of 15 medium sized power plants.CommentsClose CommentsPermalink





(B) The reuse of 500 steel drums per week yields 6 trillion Btu's per year, which is enough energy savings to power a city the size of Colorado Springs, Colorado, for 1 year.CommentsClose CommentsPermalink





(3) Unfortunately, the United States recycling rate of many consumer commodities, including aluminum, glass, and plastic, are stagnant or declining, and businesses that rely on recycled feedstock are finding it difficult to obtain the quantity and quality of recycled materials needed. Increasingly, United States manufacturing facilities that rely on recycled feedstock are closing or forced to re-tool to use virgin materials.CommentsClose CommentsPermalink





(4) The environmental impacts from reuse and recycling are significant. Increased reuse and recycling would produce significant environmental benefits, such as cleaner air, safer water, and reduced production costs. For example:CommentsClose CommentsPermalink





(A) Between 2 and 5 percent of the waste stream is reusable. Reuse prevents waste creation and adverse impacts from disposal.CommentsClose CommentsPermalink





(B) On a per-ton basis, recycling of: office paper prevents 60 pounds of air pollutants from being released, saves 7,000 gallons of water, and 3.3 cubic yards of landfill space; aluminum saves 10 cubic yards of landfill space; plastic saves 30 cubic yards of landfill space; glass prevents 7.5 pounds of air pollutants from being released and saves 2 cubic yards of landfill space; and steel saves 4 cubic yards of landfill space.CommentsClose CommentsPermalink





(C) The manufacture of 100 percent recycled paperboard products uses significantly less fossil fuel than comparable products and is therefore a net reducer of greenhouse gases. And, for every 100 tons of recycled paperboard produced, 105 tons of material is prevented from going to the landfill, thus reducing landfill gases.CommentsClose CommentsPermalink





(5) A national investment in the reuse and recycling industries is needed to preserve and expand America's reuse and recycling infrastructure.CommentsClose CommentsPermalink

SEC. 3. SPECIAL DEPRECIATION ALLOWANCE FOR CERTAIN REUSE AND RECYCLING PROPERTY.

(a) In General- Section 168 of the Internal Revenue Code of 1986 (relating to accelerated cost recovery system) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





`(l) Special Allowance for Certain Reuse and Recycling Property-CommentsClose CommentsPermalink





`(1) IN GENERAL- In the case of any qualified reuse and recycling property--CommentsClose CommentsPermalink





`(A) the depreciation deduction provided by section 167(a) for the taxable year in which such property is placed in service shall include an allowance equal to 50 percent of the adjusted basis of the qualified reuse and recycling property, andCommentsClose CommentsPermalink





`(B) the adjusted basis of the qualified reuse and recycling property shall be reduced by the amount of such deduction before computing the amount otherwise allowable as a depreciation deduction under this chapter for such taxable year and any subsequent taxable year.CommentsClose CommentsPermalink





`(2) QUALIFIED REUSE AND RECYCLING PROPERTY- For purposes of this subsection--CommentsClose CommentsPermalink





`(A) IN GENERAL- The term `qualified reuse and recycling property' means any reuse and recycling property--CommentsClose CommentsPermalink





`(i) to which this section applies,CommentsClose CommentsPermalink





`(ii) which has a useful life of at least 5 years,CommentsClose CommentsPermalink





`(iii) the original use of which commences with the taxpayer after December 31, 2006, andCommentsClose CommentsPermalink





`(iv) which is--CommentsClose CommentsPermalink





`(I) acquired by purchase (as defined in section 179(d)(2)) by the taxpayer after December 31, 2006, but only if no written binding contract for the acquisition was in effect before January 1, 2007, orCommentsClose CommentsPermalink





`(II) acquired by the taxpayer pursuant to a written binding contract which was entered into after December 31, 2006.CommentsClose CommentsPermalink





`(B) EXCEPTIONS-CommentsClose CommentsPermalink





`(i) ALTERNATIVE DEPRECIATION PROPERTY- The term `qualified reuse and recycling property' shall not include any property to which the alternative depreciation system under subsection (g) applies, determined without regard to paragraph (7) of subsection (g) (relating to election to have system apply).CommentsClose CommentsPermalink





`(ii) ELECTION OUT- If a taxpayer makes an election under this clause with respect to any class of property for any taxable year, this subsection shall not apply to all property in such class placed in service during such taxable year.CommentsClose CommentsPermalink





`(C) SPECIAL RULE FOR SELF-CONSTRUCTED PROPERTY- In the case of a taxpayer manufacturing, constructing, or producing property for the taxpayer's own use, the requirements of clause (iv) of subparagraph (A) shall be treated as met if the taxpayer begins manufacturing, constructing, or producing the property after December 31, 2006.CommentsClose CommentsPermalink





`(D) DEDUCTION ALLOWED IN COMPUTING MINIMUM TAX- For purposes of determining alternative minimum taxable income under section 55, the deduction under subsection (a) for qualified reuse and recycling property shall be determined under this section without regard to any adjustment under section 56.CommentsClose CommentsPermalink





`(3) DEFINITIONS- For purposes of this subsection--CommentsClose CommentsPermalink





`(A) REUSE AND RECYCLING PROPERTY-CommentsClose CommentsPermalink





`(i) IN GENERAL- The term `reuse and recycling property' means any machinery and equipment (not including buildings or real estate), along with all appurtenances thereto, including software necessary to operate such equipment, which is used exclusively to collect, distribute, or recycle qualified reuse and recyclable materials.CommentsClose CommentsPermalink





`(ii) EXCLUSION- Such term does not include rolling stock or other equipment used to transport reuse and recyclable materials.CommentsClose CommentsPermalink





`(B) QUALIFIED REUSE AND RECYCLABLE MATERIALS-CommentsClose CommentsPermalink





`(i) IN GENERAL- The term `qualified reuse and recyclable materials' means scrap plastic, scrap glass, scrap textiles, scrap rubber, scrap packaging, recovered fiber, scrap ferrous and nonferrous metals, or electronic scrap generated by an individual or business.CommentsClose CommentsPermalink





`(ii) ELECTRONIC SCRAP- For purposes of clause (i), the term `electronic scrap' means--CommentsClose CommentsPermalink





`(I) any cathode ray tube, flat panel screen, or similar video display device with a screen size greater than 4 inches measured diagonally, orCommentsClose CommentsPermalink





`(II) any central processing unit.CommentsClose CommentsPermalink





`(C) RECYCLING OR RECYCLE- The term `recycling' or `recycle' means that process (including sorting) by which worn or superfluous materials are manufactured or processed into specification grade commodities that are suitable for use as a replacement or substitute for virgin materials in manufacturing tangible consumer and commercial products, including packaging.'.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to property placed in service after December 31, 2006.CommentsClose CommentsPermalink

SEC. 4. TAX-EXEMPT BOND FINANCING OF RECYCLING FACILITIES.

(a) In General- Section 142 of the Internal Revenue Code of 1986 (defining exempt facility bond) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





`(n) Solid Waste Disposal Facilities-CommentsClose CommentsPermalink





`(1) IN GENERAL- For purposes of subsection (a)(6) only, the term `solid waste disposal facilities' means any facility used to perform a solid waste disposal function.CommentsClose CommentsPermalink





`(2) SOLID WASTE DISPOSAL FUNCTION-CommentsClose CommentsPermalink





`(A) IN GENERAL- For purposes of this subsection only, the term `solid waste disposal function' means the collection, separation, sorting, storage, treatment, disassembly, handling, or processing of solid waste in any manner designed to dispose of the solid waste, including processing the solid waste into a useful energy source or product.CommentsClose CommentsPermalink





`(B) EXTENT OF FUNCTION- For purposes of this subsection only, the solid waste disposal function ends at the later of--CommentsClose CommentsPermalink





`(i) the point of final disposal of the solid waste,CommentsClose CommentsPermalink





`(ii) immediately after the solid waste is incinerated or otherwise transformed or processed to generate heat, and the resulting heat is put into a form such as steam in which such heat is in fact sold or used, orCommentsClose CommentsPermalink





`(iii) the point at which the solid waste has been converted into a material or product that can be sold in the same manner as comparable material or product produced from virgin material.CommentsClose CommentsPermalink





`(C) FUNCTIONALLY RELATED AND SUBORDINATE FACILITIES- For purposes of this subsection only, in the case of a facility used to perform both a solid waste disposal function and another function--CommentsClose CommentsPermalink





`(i) the costs of the facility allocable to the solid waste disposal function are determined using any reasonable method based upon facts and circumstances, andCommentsClose CommentsPermalink





`(ii) if during the period that bonds issued as part of an issue described in subsection (a)(6) are outstanding with respect to any facility at least 65 percent of the materials processed in such facility are solid waste materials as measured by weight or volume, then all of the costs of the property used to perform such process are allocable to a solid waste disposal function.CommentsClose CommentsPermalink





`(3) SOLID WASTE- For purposes of this subsection only--CommentsClose CommentsPermalink





`(A) IN GENERAL- The term `solid waste' means garbage, refuse, or discarded solid materials, including waste materials resulting from industrial, commercial, agricultural, or community activities.CommentsClose CommentsPermalink





`(B) GARBAGE, REFUSE OR DISCARDED SOLID MATERIALS- For purposes of subparagraph (A), the term `garbage, refuse, or discarded solid materials' means materials that are useless, unused, unwanted, or discarded, regardless of whether or not such materials have value.CommentsClose CommentsPermalink





`(C) EXCLUSION- The term `solid waste' does not include materials in domestic sewage, pollutants in industrial or other water resources, or other liquid or gaseous waste materials.'.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to bonds issued before, on, or after the date of the enactment of this Act.CommentsClose CommentsPermalink