Amends the Internal Revenue Code to allow a tax credit for investment in qualified reclamation property. Defines "qualified reclamation property" as tangible depreciable recycling or remanufacturing property with a useful life of at least five years. Limits the amount of such credit to 20 percent of the basis (not exceeding $10 million) of qualified reclamation property placed in service during a taxable year.
Directs the Secretary of Transportation to study the performance and safety of recycled, non-deployed airbags used in automobiles.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1723 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 1723
To amend the Internal Revenue Code of 1986 to allow a credit against
income tax for recycling or remanufacturing equipment, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 20, 2005
Mr. Bradley of New Hampshire introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow a credit against
income tax for recycling or remanufacturing equipment, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
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 (1), by striking the period at the end
of paragraph (2) and inserting ``, and'', and by adding at the end the
following new paragraph:
``(3) the reclamation credit.''
(b) Reclamation Credit.--Section 48 of such Code (relating to
energy credit) is amended by adding at the end the following new
subsection:
``(c) Reclamation Credit.--
``(1) 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.
``(2) Qualified reclamation property.--
``(A) In general.--For purposes of this subsection,
the term `qualified reclamation property' means
property--
``(i) which is qualified recycling property
or qualified remanufacturing property,
``(ii) which is tangible property (not
including a building and its structural
components),
``(iii) with respect to which depreciation
(or amortization in lieu of depreciation) is
allowable,
``(iv) which has a useful life of at least
5 years, and
``(v) which is--
``(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,
or
``(II) constructed by or for the
taxpayer.
``(B) Dollar limitation.--
``(i) 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.
``(ii) Treatment of controlled group.--For
purposes of clause (i)--
``(I) all component members of a
controlled group shall be treated as
one taxpayer, and
``(II) the Secretary shall
apportion the dollar limitation in such
clause among the component members of
such controlled group in such manner as
he shall by regulation prescribe.
``(iii) Treatment of partnerships and s
corporations.--In the case of a partnership,
the dollar limitation in clause (i) 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.
``(iv) Controlled group defined.--For
purposes of clause (ii), 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).
``(3) 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.
``(4) Definitions.--For purposes of this subsection--
``(A) 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.
``(B) 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--
``(i) the rebuilt or remanufactured product
or part includes 50 percent or less virgin
material, and
``(ii) the equipment is not used primarily
in a process occurring after the product or
part is rebuilt or remanufactured.
``(5) Coordination with rehabilitation and energy
credits.--For purposes of this section--
``(A) 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)), and
``(B) expenditures taken into account under either
section 47 or 48(a) shall not be taken into account
under this section.''.
(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''.
(d) Clerical Amendments.--
(1) The section heading for section 48 of such Code is
amended to read as follows:
``SEC. 48. ENERGY CREDIT; RECLAMATION CREDIT.''
(2) The item relating to section 48 in the table of
sections for subpart E of part IV of subchapter A of chapter 1
of such Code is amended to read as follows:
``Sec. 48. Energy credit; reclamation credit.''.
(e) Effective Date.--The amendments made by this section shall
apply to property placed in service on or after January 1, 2006.
SEC. 2. STUDY ON EFFECTIVENESS OF RECYCLED AUTOMOBILE AIRBAGS.
(a) Study.--The Secretary of Transportation, through the
appropriate agency, shall conduct a study on the performance and safety
of recycled, non-deployed original equipment manufacturer airbags and
airbag modules compared to new, original equipment manufacturer airbags
and airbag modules used in automobiles.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary of Transportation shall transmit to Congress a
report on the results of the study conducted pursuant to subsection
(a).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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