Plastics Recycling Act of 2009 - Amends the Internal Revenue Code to allow a business-related tax credit equal to 60 cents per gallon of qualified synthetic oil produced from recycled waste plastics. Defines "qualified synthetic oil" as oil derived from post-consumer and post-industrial waste plastics and which has a minimum market value of 90% of crude oil.
Directs the Secretary of the Treasury to make grants to persons eligible for the waste plastic recycling tax credit provided by this Act in lieu of such credit.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3592 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 3592
To amend the Internal Revenue Code of 1986 to allow a tax credit for
producing oil from recycled waste.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 17, 2009
Mr. Pascrell (for himself, Mr. Reichert, Mrs. Christensen, and Ms.
Jackson-Lee of Texas) introduced the following bill; which was referred
to the Committee on Ways and Means, and in addition to the Committee on
Energy and Commerce, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow a tax credit for
producing oil from recycled waste.
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 ``Plastics Recycling Act of 2009''.
SEC. 2. PRODUCTION TAX CREDIT FOR CERTAIN RECYCLING ACTIVITIES.
(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. 45R. OIL PRODUCED FROM CERTAIN RECYCLING ACTIVITIES.
``(a) General Rule.--For purposes of section 38, the waste plastic
recycling credit for any taxable year is an amount equal to the product
of--
``(1) 60 cents, multiplied by
``(2) the number of gallons of qualified synthetic oil--
``(A) produced by the taxpayer from qualified
feedstock at a qualified small conversion process
recycling facility during the 10-year period beginning
on the date the facility was originally placed in
service, and
``(B) used or sold by the taxpayer in a trade or
business to an unrelated person during the taxable
year.
``(b) Exception for De Minimis Percentage of Non-Qualifying
Feedstock.--In the case that a producer uses non-qualified feedstock to
produce a gallon (or part thereof) of qualified synthetic oil, the
amount of the credit determined under subsection (a) with respect to
such gallon--
``(1) shall be reduced by an amount equal to the amount of
the credit (determined without regard to this subsection)
multiplied by the percentage of non-qualifying feedstock used
in the production of such gallon, and
``(2) if the percentage of non-qualifying feedstock so used
is greater than 15 percent, the credit determined under
subsection (a) with respect to such gallon shall be zero.
``(c) Definitions.--For purposes of this section--
``(1) Qualified synthetic oil.--The term `qualified
synthetic oil' means oil derived from eligible feedstocks and
which has a minimum market value of 90 percent of crude oil,
represented by the New York Mercantile Exchange front-month
contract quoted at the time of sale.
``(2) Qualified small conversion process recycling
facility.--The term `qualified small conversion process
recycling facility' means any facility which--
``(A) is owned by the taxpayer,
``(B) is originally placed in service after the
date of the enactment of this section and before
January 1, 2015, and
``(C) has a maximum daily production capacity of
not more than 2,000 barrels of qualified synthetic oil.
``(3) Eligible feedstock.--The term `eligible feedstock'
means post-consumer and post-industrial waste plastics.
``(4) Plastic.--The term `plastic' means any material that
is derived from one or more of the categories of materials in
the resin identification system developed by the Society of the
Plastics Industry (SPI) in 1988.
``(d) Applicable Rules.--For purposes of this section, rules
similar to the rules of paragraphs (1), (3), (4), and (5) of section
45(e) shall apply.
``(e) Denial of Double Benefit.--A credit shall not be allowed
under section 40, 40A, or 6426 with respect to any fuel for which a
credit is allowed under this section.
``(f) Coordination With Department of Treasury Grants.--In the case
of any taxpayer with respect to whom the Secretary makes a grant under
section 3 of the Plastics Recycling Act of 2009 with respect to any
oil--
``(1) Denial of credits.--No credit with respect to such
oil shall be determined under this section or section 40, 40A,
or 6426 for the taxable year in which such grant is made or any
subsequent taxable year.
``(2) Recapture of credits made before grant.--If a credit
was determined under this section with respect to such oil for
any taxable year ending before such grant is made--
``(A) the tax imposed under subtitle A on the
taxpayer for the taxable year in which such grant is
made shall be increased by so much of such credit as
was allowed under section 38,
``(B) the general business carryforwards under
section 39 shall be adjusted so as to recapture the
portion of such credit which was not so allowed, and
``(C) the amount of such grant shall be determined
without regard to any reduction in the basis of such
property by reason of such credit.
``(3) Treatment of grants.--Any such grant shall not be
includible in the gross income of the taxpayer.''.
(b) Credit Allowed as Part of General Business Credit.--Section
38(b) of such Code (defining current year business credit) is amended
by striking ``plus'' at the end of paragraph (34), by striking the
period at the end of paragraph (35) and inserting ``, plus'', and by
adding at the end the following new paragraph:
``(36) the waste plastic recycling credit determined under
section 45R(a).''.
(c) Conforming Amendment.--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. 45R. Oil produced from certain recycling activities.''.
(d) Effective Date.--The amendments made by this section shall
apply to oil produced after the date of enactment of this Act.
SEC. 3. GRANTS FOR OIL PRODUCED FROM CERTAIN RECYCLING ACTIVITIES IN
LIEU OF TAX CREDITS.
(a) In General.--Upon application, the Secretary of the Treasury
(or the Secretary's delegate) shall make a grant to each person to whom
the waste plastic recycling credit determined under section 45R of the
Internal Revenue Code of 1986 is allowable for the taxable year in
which the grant is made.
(b) Grant Determination.--The grant under subsection (a) shall be
determined in the same manner as the credit is determined under section
45R of the Internal Revenue Code of 1986 (determined without regard to
section 38(c) of such Code) for the taxable year in which the grant is
made.
(c) Exception for Certain Non-Taxpayers.--The Secretary of the
Treasury shall not make any grant under this section to--
(1) any Federal, State, or local government (or any
political subdivision, agency, or instrumentality thereof),
(2) any organization described in section 501(c) of the
Internal Revenue Code of 1986 and exempt from tax under section
501(a) of such Code,
(3) any entity referred to in paragraph (4) of section
54(j) of such Code, or
(4) any partnership or other pass-thru entity any partner
(or other holder of an equity or profits interest) of which is
described in paragraph (1), (2) or (3).
(d) Appropriations.--For purposes of section 1324(b) of title 31,
United States Code, a grant under this section shall be treated as a
credit provision described in paragraph (2) of such section.
<all>
Introduced in House
Introduced in House
Referred to House Ways and Means
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to House Energy and Commerce
Referred to the Subcommittee on Energy and Environment.
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