I

106TH CONGRESS

2D SESSION H. R. 4916

To amend the Internal Revenue Code of 1986 to increase the aggregate

cost of certain reusable pallets and containers and related property which

may be expensed under section 179.

IN THE HOUSE OF REPRESENTATIVES

JULY 20, 2000

Mr. ROHRABACHER (for himself and Mr. MATSUI) 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 increase

the aggregate cost of certain reusable pallets and containers and related property which may be expensed

under section 179.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Landfill Reduction Act

5 of 2000’’.

6 SEC. 2. FINDINGS.

7 Congress finds that:
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1 (1) While most forms of pollution are steadily

2 being reduced in the United States, solid waste dis3 cards are projected to increase by 10 percent be4 tween 2000 and 2010, based on Environmental Pro5 tection Agency data.

6 (2) American consumers and businesses spend

7 an estimated $1 billion annually to dispose of card8 board boxes and low quality shipping pallets.

9 (3) The cost of disposing of municipal solid

10 waste has been increasing at a 7 percent annual

11 rate.

12 (4) There are regional shortages of solid waste

13 disposal capacity, and siting new facilities is conten14 tious for local governments. These conditions will be

15 exacerbated by the growth of solid waste discards.

16 (5) There are already spirited interstate dis17 putes, expressed in litigation and legislation, regard18 ing efforts to regulate interstate shipment of solid

19 waste.

20 (6) Dozens of other nations are pursuing regu21 latory approaches and surtaxes to reduce the

22 amount of solid waste from packaging.

23 (7) The Pollution Prevention Act of 1990 estab24 lishes a hierarchy for handling waste, with source re25 duction and reuse being preferable to recycling.
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1 (8) It is in the national environmental and eco2 nomic interest to reaffirm and emphasize the Pollu3 tion Prevention Act of 1990’s priority on source re4 duction and reuse, without resorting to new Federal

5 regulatory requirements or new Federal taxes.

6 (9) Emerging industry has the means to dra7 matically reduce the amount of packaging waste,

8 thereby conserving solid waste disposal capacity, im9 proving the environment, and reducing unnecessary

10 costs to consumers, local governments, and business

11 alike.

12 SEC. 3. PURPOSE.

13 The purpose of this Act is to provide tax incentives

14 to encourage the utilization of reusable wooden and plastic

15 pallets and plastic containers in order to fulfill the goals

16 of the Pollution Prevention Act of 1990, improve national

17 environmental quality through reduced solid waste, in18 crease economic productivity by reducing the costs associ19 ated with waste disposal, reduce inflationary pressures as20 sociated with the escalating cost of waste disposal, reduce

21 friction among the States concerning interstate solid waste

22 transportation, and provide a cost-efficient nonregulatory

23 model for addressing environmental problems.
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1 SEC. 4. INCREASE IN AGGREGATE COST OF REUSABLE PAL2 LETS AND CONTAINERS AND CERTAIN RE3 LATED PROPERTY WHICH MAY BE EXPENSED.

4 (a) IN GENERAL.—Section 179 of the Internal Rev5 enue Code of 1986 (relating to election to expense certain

6 depreciable business assets) is amended by adding at the

7 end the following new subsection:

8 ‘‘(e) INCREASED EXPENSING FOR REUSABLE PAL9 LETS AND CONTAINERS AND CERTAIN RELATED PROP10 ERTY.—

11 ‘‘(1) IN GENERAL.—The limitation under sub12 section (b)(1) (after the application of paragraph (2)

13 and before the application of paragraph (3) of such

14 subsection) shall not be less than an amount equal

15 to the lesser of—

16 ‘‘(A) $500,000, or

17 ‘‘(B) the cost of section 179 property

18 which is qualified reusable pallet and container

19 property placed in service during the taxable

20 year.

21 ‘‘(2) QUALIFIED REUSABLE PALLET AND CON22 TAINER PROPERTY.—For purposes of this

23 subsection—

24 ‘‘(A) IN GENERAL.—The term ‘qualified

25 reusable pallet and container property’ means—
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1 ‘‘(i) property designed exclusively to

2 manufacture reusable pallet and container

3 property,

4 ‘‘(ii) reusable pallet and container

5 property used exclusively to transport

6 items manufactured or produced by the

7 taxpayer but only if—

8 ‘‘(I) such transportation is under

9 an arrangement for the return of such

10 property to the taxpayer for reuse,

11 and

12 ‘‘(II) such property does not re13 place other reusable pallet and con14 tainer property,

15 ‘‘(iii) property designed exclusively for

16 purposes of inspecting, repairing, cleaning,

17 or maintaining reusable pallet and con18 tainer property and used exclusively for

19 such purposes with respect to reusable pal20 let and container property owned or leased

21 by the taxpayer,

22 ‘‘(iv) property designed exclusively to

23 accommodate the use, or enhance the effi24 ciency, of any reusable pallet and container

25 property associated with harvesting, pack-
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1 ing, handling, or storage of agricultural

2 products, and

3 ‘‘(v) property which modifies a display

4 for the retail sale of an item exclusively for

5 purposes of permitting such item to be dis6 played in the reusable pallet and container

7 property in which such item was trans8 ported.

9 ‘‘(B) SUBSECTION NOT TO APPLY TO CER10 TAIN VEHICLES.—The term ‘qualified reusable

11 pallet and container property’ shall not include

12 automobiles, vessels, aircraft, trucks, forklifts,

13 pallet jacks, or rolling stock or other similar

14 property.

15 ‘‘(3) REUSABLE PALLET AND CONTAINER PROP16 ERTY.—For purposes of this subsection, the term

17 ‘reusable pallet and container property’ means any

18 wooden or plastic pallet or plastic crate which is

19 under an arrangement for the repeated return of

20 such property to its initial purchaser, for long-term

21 reuse.

22 ‘‘(4) TERMINATION.—This subsection shall not

23 apply to any taxable year beginning after December

24 31, 2008.’’.
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1 (b) EFFECTIVE DATE.—The amendment made by

2 this section shall apply to taxable years beginning after

3 the date of the enactment of this Act.

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