I 

111TH CONGRESS 

2D SESSION H. R. 5695 

To amend the Internal Revenue Code of 1986 to allow retail businesses 

a credit against income tax for a portion of the cost of recycling plastic 

carry-out bags and certain other types of plastic. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 1, 2010 

Mrs. LOWEY 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 retail 

businesses a credit against income tax for a portion 

of the cost of recycling plastic carry-out bags and certain 

other types of plastic. 

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 ‘‘Economic Credit Op5 portunity for Businesses Acting Green Act of 2010’’ or 

6 the ‘‘ECOBAG Act of 2010’’. 

7 SEC. 2. FINDINGS AND PURPOSE. 

8 (a) FINDINGS.—The Congress finds the following: 


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1 (1) It is estimated that Americans use approxi2 mately 100 billion plastic bags per year. An esti3 mated 0.6 percent of these bags will be recycled. 

4 (2) The production of plastic bags and film 

5 plastic worldwide uses over 12 million barrels of oil 

6 per year, accounting for upwards of 4 percent of the 

7 world’s total oil production. 

8 (3) The Environmental Protection Agency has 

9 found that the average plastic bag will take up to 

10 1,000 years to decompose. Because these plastic 

11 bags do not biodegrade, when improperly disposed 

12 they ultimately end up breaking down into smaller 

13 pieces contaminating our soil and waterways while 

14 causing injury, illness, or death to our animal and 

15 marine life. 

16 (b) PURPOSE.—The purpose of this Act is to allow 

17 an income tax credit for retail businesses that participate 

18 in at-store plastic bag recycling programs. 

19 SEC. 3. CREDIT FOR COSTS OF COLLECTION AND RECY20 CLING BY RETAIL BUSINESSES OF PLASTIC 

21 CARRY-OUT BAGS AND CERTAIN OTHER 

22 TYPES OF PLASTIC. 

23 (a) IN GENERAL.—Subpart D of part IV of sub24 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 (relating to business-related credits) is amended by 

2 adding at the end the following new section: 

3 ‘‘SEC. 45S. COSTS OF COLLECTION AND RECYCLING BY RE4 TAIL BUSINESSES OF PLASTIC CARRY-OUT 

5 BAGS AND CERTAIN OTHER TYPES OF PLAS6 TIC. 

7 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

8 the case of an eligible taxpayer, the plastic carry-out bag 

9 recycling credit is an amount equal to 15 percent of the 

10 amount paid or incurred directly or indirectly by the tax11 payer to implement an at-store recycling program for 1 

12 or more types of eligible plastic. 

13 ‘‘(b) ELIGIBLE TAXPAYER.—For purposes of this 

14 section— 

15 ‘‘(1) IN GENERAL.—The term ‘eligible taxpayer’ 

16 means any taxpayer engaged in the trade or busi17 ness of selling property at retail and who accepts for 

18 recycling 1 or more types of eligible plastic at retail 

19 business premises of the taxpayer. 

20 ‘‘(2) EXCEPTION.—Such term shall not include 

21 any taxpayer engaged in the trade or business of re22 cycling. 

23 ‘‘(c) ELIGIBLE PLASTIC.—For purposes of this sec24 tion, the term ‘eligible plastic’ means plastic carry-out 


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1 bags, film plastic, and other types of plastic specified in 

2 regulations prescribed by the Secretary. 

3 ‘‘(d) EXPENSES OFFSET BY RECYCLING INCOME.— 

4 The expenses which would (but for this subsection) be 

5 taken into account under subsection (a) shall be reduced 

6 by any income from the sale of used plastic carry-out bags 

7 to any recycler.’’. 

8 (b) CONFORMING AMENDMENT.—Section 38(b) of 

9 such Code is amended by striking ‘‘plus’’ at the end of 

10 paragraph (35), by striking the period at the end of para11 graph (36) and inserting ‘‘, plus’’, and by adding at the 

12 end the following new paragraph: 

13 ‘‘(37) the plastic carry-out bag recycling credit 

14 determined under section 45S(a).’’. 

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

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

17 of such Code is amended by adding at the end the fol18 lowing new item: 

‘‘Sec. 45S. Costs of collection and recycling by retail businesses of plastic carryout bags and certain other types of plastic.’’. 

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

20 this section shall apply to amounts paid or incurred after 

21 the date of the enactment of this Act in taxable years end22 ing after such date. 

Æ 


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