Recycling Investment Saves Energy or the RISE Act - Amends the Internal Revenue Code to allow a first-year tax deduction of 50% of the adjusted basis of qualified reuse and recycling property. Defines "qualified reuse and recycling property" as property placed in service after December 31, 2006, which has a useful life of at least five years and which is used exclusively to collect, distribute, or recycle certain scrap materials.
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5372 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 5372
To amend the Internal Revenue Code to allow a special depreciation
allowance for reuse and recycling property.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 12, 2008
Ms. Bean (for herself and Mr. Sires) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code to allow a special depreciation
allowance for reuse and recycling property.
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 ``Recycling Investment Saves Energy''
or the ``RISE Act''.
SEC. 2. FINDINGS.
The Congress finds the following:
(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.
(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:
(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.
(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.
(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.
(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:
(A) Between 2 and 5 percent of the waste stream is
reusable. Reuse prevents waste creation and adverse
impacts from disposal.
(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.
(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.
(5) A national investment in the reuse and recycling
industries is needed to preserve and expand America's reuse and
recycling infrastructure.
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:
``(l) Special Allowance for Certain Reuse and Recycling Property.--
``(1) In general.--In the case of any qualified reuse and
recycling property--
``(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, and
``(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.
``(2) Qualified reuse and recycling property.--For purposes
of this subsection--
``(A) In general.--The term `qualified reuse and
recycling property' means any reuse and recycling
property--
``(i) to which this section applies,
``(ii) which has a useful life of at least
5 years,
``(iii) the original use of which commences
with the taxpayer after December 31, 2006, and
``(iv) which is--
``(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, or
``(II) acquired by the taxpayer
pursuant to a written binding contract
which was entered into after December
31, 2006.
``(B) Exceptions.--
``(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).
``(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.
``(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.
``(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.
``(3) Definitions.--For purposes of this subsection--
``(A) Reuse and recycling property.--
``(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.
``(ii) Exclusion.--Such term does not
include--
``(I) rolling stock or other
equipment used to transport reuse and
recyclable materials, and
``(II) equipment used to produce
new products or commodities from
recycled products.
``(B) Qualified reuse and recyclable materials.--
``(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.
``(ii) Electronic scrap.--For purposes of
clause (i), the term `electronic scrap' means--
``(I) any cathode ray tube, flat
panel screen, or similar video display
device with a screen size greater than
4 inches measured diagonally, or
``(II) any central processing
unit.''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2006.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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