I 

114TH CONGRESS 

2D SESSION H. R. 5194 

To amend the Internal Revenue Code of 1986 to allow a credit against 

tax for costs incurred by certain businesses for drug disposal programs. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 11, 2016 

Mr. BLUMENAUER 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 costs incurred by certain businesses 

for drug disposal programs. 

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 ‘‘Safe Drug Disposal 

5 Tax Credit Act of 2016’’. 

6 SEC. 2. DRUG DISPOSAL PROGRAM CREDIT. 

7 (a) IN GENERAL.—Subpart D of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of 

9 1986 is amended by adding at the end the following new 

10 section: 


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1 ‘‘SEC. 45S. DRUG DISPOSAL PROGRAM CREDIT. 

2 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

3 in the case of an eligible entity, the drug disposal program 

4 credit determined under this section for a taxable year is 

5 30 percent of the qualified drug disposal program costs 

6 of such entity for the taxable year. 

7 ‘‘(b) DEFINITIONS.—For purposes of this section— 

8 ‘‘(1) QUALIFIED DRUG DISPOSAL PROGRAM

9 COSTS.—The term ‘qualified drug disposal program 

10 costs’ means amounts paid or incurred by an eligible 

11 entity for establishing or maintaining a drug dis12 posal site, including amounts for materials for such 

13 site, outreach and training about the use of such 

14 site, and safe disposal of drugs collected at such site. 

15 ‘‘(2) DRUG DISPOSAL SITE.—The term ‘drug 

16 disposal site’ means a location where individuals can, 

17 free of charge, deposit drugs to be disposed of le18 gally. 

19 ‘‘(3) ELIGIBLE ENTITY.—The term ‘eligible en20 tity’ means an entity authorized under the Con21 trolled Substances Act to dispose of controlled sub22 stances. 

23 ‘‘(4) DRUG.—The term ‘drug’ has the meaning 

24 given such term in section 201 of the Federal Food, 

25 Drug, and Cosmetic Act and includes a biological 


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1 product, as defined in section 351 of the Public 

2 Health Service Act. 

3 ‘‘(c) BASIS ADJUSTMENT.—If a credit is determined 

4 under this section with respect to any property, the basis 

5 of such property shall be reduced by the amount of the 

6 credit so determined.’’. 

7 (b) CONFORMING AMENDMENTS.— 

8 (1) Section 38(b) of such Code is amended by 

9 striking ‘‘plus’’ at the end of paragraph (35), by 

10 striking the period at the end of paragraph (36) and 

11 inserting ‘‘, plus’’, and by adding at the end the fol12 lowing new paragraph: 

13 ‘‘(37) in the case of an eligible entity (as de14 fined in section 45S(b)), the drug disposal program 

15 credit determined under section 45S.’’. 

16 (2) Section 1016(a) of such Code is amended 

17 by striking ‘‘and’’ at the end of paragraph (36), by 

18 striking the period at the end of paragraph (37) and 

19 inserting ‘‘, and’’, and by adding at the end the fol20 lowing new paragraph: 

21 ‘‘(38) in the case of property with respect to 

22 which a credit was allowed under section 45S, to the 

23 extent provided in section 45S(c).’’. 

24 (c) CLERICAL AMENDMENT.—The table of sections 

25 for subpart D of part IV of subchapter A of chapter 1 


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1 of such Code is amended by inserting after the item relat2 ing to section 45R the following new item: 

‘‘Sec. 45S. Drug disposal program credit.’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section apply with respect to taxable years beginning 

5 after December 31, 2016. 

Æ 


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