Recycled Highway Product Tax Act of 2005

Recycled Highway Product Tax Act of 2005 - Amends the Internal Revenue Code to allow a business tax credit for five percent of the cost of recycled materials used in qualified highway or surface freight transfer facilities. Limits the annual amount of such credit to $15,000.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4441 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4441

 To amend the Internal Revenue Code of 1986 to allow a credit against 
 tax for certain expenses related to the use of recycled materials in 
       qualified highway or surface freight transfer facilities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 6, 2005

 Mr. Andrews 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 
 tax for certain expenses related to the use of recycled materials in 
       qualified highway or surface freight transfer facilities.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Recycled Highway Product Tax Act of 
2005''.

SEC. 2. RECYCLED HIGHWAY PRODUCT TAX CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end the following new section:

``SEC. 45N. RECYCLED HIGHWAY PRODUCT TAX CREDIT.

    ``(a) General Rule.--For purposes of section 38, the recycled 
highway product tax credit determined under this section for a taxable 
year is an amount equal to 5 percent of the amount paid or incurred by 
the taxpayer during the taxable year to purchase qualified recycled 
materials for qualified highway or surface freight transfer facilities 
(as defined in section 142(m)(1)).
    ``(b) Limitations.--With respect to a taxpayer, the credit allowed 
under subsection (a) shall not exceed $15,000 for a taxable year.
    ``(c) Qualified Recycled Materials.--For purposes of this section,
            ``(1) In general.--The term `qualified recycled material' 
        means material that contains at least 15 percent pre-consumer 
        goods or post-consumer goods.
            ``(2) Pre-consumer goods.--The term `pre-consumer goods' 
        means raw materials that are byproducts of a manufacturing 
        process, but have not yet been used by a consumer.
            ``(3) Post-consumer goods.--The term `post-consumer goods' 
        means materials that have been used by a consumer.''.
    (b) Conforming Amendments.--
            (1) Section 38(b) of such Code is amended by striking 
        ``and'' at the end of paragraph (25), by striking the period at 
        the end of paragraph (26) and inserting ``, and'', and by 
        adding at the end the following new paragraph:
            ``(27) the recycled highway product tax credit determined 
        under section 45N.''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 45N. Recycled highway product tax credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.
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