I 

110TH CONGRESS 

2D SESSION H. R. 5659 

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

income tax for recycling or remanufacturing equipment. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 31, 2008 

Mr. ENGLISH of Pennsylvania (for himself, Mr. SESSIONS, Mr. WALSH of New 

York, Mr. CHABOT, Mr. WILSON of South Carolina, and Mr. SENSENBRENNER) 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 income tax for recycling or remanufacturing equipment. 

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

3 SECTION 1. CREDIT FOR RECYCLING OR REMANUFAC4 TURING EQUIPMENT. 

5 (a) IN GENERAL.—Section 46 of the Internal Rev6 enue Code of 1986 (relating to amount of investment cred7 it) is amended by striking ‘‘and’’ at the end of paragraph 

8 (3), by striking the period at the end of paragraph (4) 


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1 and inserting ‘‘, and’’, and by adding at the end the fol2 lowing new paragraph: 

3 ‘‘(5) the reclamation credit.’’. 

4 (b) RECLAMATION CREDIT.—Subpart E of part IV 

5 of subchapter A of chapter 1 of such Code (relating to 

6 rules for computing investment credit) is amended by in7 serting after section 48B the following new section: 

8 ‘‘SEC. 48C. RECYCLING OR REMANUFACTURING EQUIP9 MENT. 

10 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

11 reclamation credit for any taxable year is 20 percent of 

12 the basis of each qualified reclamation property placed in 

13 service during the taxable year. 

14 ‘‘(b) QUALIFIED RECLAMATION PROPERTY.— 

15 ‘‘(1) IN GENERAL.—For purposes of this sec16 tion, the term ‘qualified reclamation property’ means 

17 property— 

18 ‘‘(A) which is qualified recycling property 

19 or qualified remanufacturing property, 

20 ‘‘(B) which is tangible property (not in21 cluding a building and its structural compo22 nents), 

23 ‘‘(C) with respect to which depreciation (or 

24 amortization in lieu of depreciation) is allow25 able, 


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1 ‘‘(D) which has a useful life of at least 5 

2 years, and 

3 ‘‘(E) which is— 

4 ‘‘(i) acquired by purchase (as defined 

5 in section 179(d)(2)) by the taxpayer if the 

6 original use of such property commences 

7 with the taxpayer, or 

8 ‘‘(ii) constructed by or for the tax9 payer. 

10 ‘‘(2) DOLLAR LIMITATION.— 

11 ‘‘(A) IN GENERAL.—The basis of qualified 

12 reclamation property taken into account under 

13 paragraph (1) for any taxable year shall not ex14 ceed $10,000,000 for a taxpayer. 

15 ‘‘(B) TREATMENT OF CONTROLLED

16 GROUP.—For purposes of subparagraph (A)— 

17 ‘‘(i) all component members of a con18 trolled group shall be treated as one tax19 payer, and 

20 ‘‘(ii) the Secretary shall apportion the 

21 dollar limitation in such subparagraph 

22 among the component members of such 

23 controlled group in such manner as he 

24 shall by regulation prescribe. 


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1 ‘‘(C) TREATMENT OF PARTNERSHIPS AND

2 S CORPORATIONS.—In the case of a partner3 ship, the dollar limitation in subparagraph (A) 

4 shall apply with respect to the partnership and 

5 with respect to each partner. A similar rule 

6 shall apply in the case of an S corporation and 

7 its shareholders. 

8 ‘‘(D) CONTROLLED GROUP DEFINED.—For 

9 purposes of subparagraph (B), the term ‘con10 trolled group’ has the meaning given such term 

11 by section 1563(a), except that ‘more than 50 

12 percent’ shall be substituted for ‘at least 80 

13 percent’ each place it appears in section 

14 1563(a)(1). 

15 ‘‘(c) CERTAIN PROGRESS EXPENDITURE RULES

16 MADE APPLICABLE.—Rules similar to the rules of sub17 sections (c)(4) and (d) of section 46 (as in effect on the 

18 day before the date of the enactment of the Revenue Rec19 onciliation Act of 1990) shall apply for purposes of this 

20 subsection. 

21 ‘‘(d) DEFINITIONS.—For purposes of this section— 

22 ‘‘(1) QUALIFIED RECYCLING PROPERTY.—The 

23 term ‘qualified recycling property’ means equipment 

24 used exclusively to collect, distribute, or sort used 

25 ferrous or nonferrous metals. The term does not inVerDate Aug 31 2005 03:43 Apr 01, 2008 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5659.IH H5659

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1 clude equipment used to collect, distribute, or sort 

2 precious metals such as gold, silver, or platinum un3 less such use is coincidental to the collection, dis4 tribution, or sorting of other used ferrous or non5 ferrous metals. 

6 ‘‘(2) QUALIFIED REMANUFACTURING PROP7 ERTY.—The term ‘qualified remanufacturing prop8 erty’ means equipment used primarily by the tax9 payer in the business of rebuilding or remanufac10 turing a used product or part, but only if— 

11 ‘‘(A) the rebuilt or remanufactured prod12 uct or part includes 50 percent or less virgin 

13 material, and 

14 ‘‘(B) the equipment is not used primarily 

15 in a process occurring after the product or part 

16 is rebuilt or remanufactured. 

17 ‘‘(e) COORDINATION WITH REHABILITATION AND

18 ENERGY CREDITS.—For purposes of this section— 

19 ‘‘(1) the basis of any qualified reclamation 

20 property shall be reduced by that portion of the 

21 basis of any property which is attributable to quali22 fied rehabilitation expenditures (as defined in section 

23 47(c)(2)) or to the energy percentage of energy 

24 property (as determined under section 48(a)), and 


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1 ‘‘(2) expenditures taken into account under ei2 ther section 47 or 48(a) shall not be taken into ac3 count under this section.’’. 

4 (c) SPECIAL BASIS ADJUSTMENT RULE.—Paragraph 

5 (3) of section 50(c) of such Code (relating to basis adjust6 ment to investment credit property) is amended by insert7 ing ‘‘or reclamation credit’’ after ‘‘energy credit’’. 

8 (d) CLERICAL AMENDMENT.—The table of sections 

9 for subpart E of part IV of subchapter A of chapter 1 

10 of such Code is amended by inserting after the item relat11 ing to section 48B the following new item: 

‘‘Sec. 48C. Recycling or remanufacturing equipment.’’. 

12 (e) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to property placed in service on 

14 or after January 1, 2007. 

Æ 


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