into account under paragraph (1)(B)(i) have oc-
curred on 7 or more preceding days during such cal-
endar year. 
‘‘(e) SPECIAL RULES.— 
‘‘(1) PASS
THROUGH
OF
TAX.—The tax im-
posed by subsection (a) shall be passed through to 
the customer and shall be separately stated on the 
receipt of sale provided to the customer. 
‘‘(2) 1ST
RETAIL
SALE; USE
TREATED
AS 
SALE.—For purposes of this section, rules similar to 
the rules of subsections (a) and (b) of section 4002 
shall apply.’’. 
(b) PLASTIC
CARRYOUT
BAG
RECYCLING
PRO-
GRAM.—Subchapter B of chapter 65 of such Code is 
amended by adding at the end the following new section: 
‘‘SEC. 6433. QUALIFIED PLASTIC CARRYOUT BAG RECY-
CLING PROGRAM. 
‘‘(a) ALLOWANCE OF CREDIT.—If— 
‘‘(1) tax has been imposed under section 4056 
on any carryout bag, 
‘‘(2) a retailer provides such bag to a customer 
in a point of sale transaction, 
‘‘(3) in the case of a carryout bag made of 
paper, such paper consists of not less than 40 per-
cent post-consumer recycled content, 
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‘‘(4) such retailer has in effect at the time of 
such transaction a qualified plastic carryout bag re-
cycling program, and 
‘‘(5) such retailer has kept and can produce 
records for purposes of this section and section 4056 
that include the total number of carryout bags pur-
chased and the amounts passed through to the cus-
tomer for such bags pursuant to section 4056(e), 
the Secretary shall pay (without interest) to such retailer 
an amount equal to the applicable amount for each such 
bag used by the retailer in connection with a point of sale 
transaction. 
‘‘(b) APPLICABLE AMOUNT.—For purposes of sub-
section (a), the applicable amount is $0.04. 
‘‘(c) QUALIFIED PLASTIC CARRYOUT BAG RECY-
CLING PROGRAM.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified plastic 
carryout bag recycling program’ means a recycling 
program under which the retailer— 
‘‘(A) to the extent the retailer provides 
carryout bags (as defined in section 4056) 
made of plastic to customers— 
‘‘(i) passes through the tax imposed 
by section 4056 and tracks the total num-
ber of bags purchased and amount of tax 
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passed 
through 
pursuant 
to 
section 
6433(a), 
‘‘(ii) has printed or displayed on each 
such bag, in a manner clearly visible to a 
customer, the words ‘PLEASE RETURN 
TO A PARTICIPATING STORE FOR 
RECYCLING’, 
‘‘(iii) uses bags that are 100-percent 
recyclable, and 
‘‘(iv) uses bags that are made of high- 
density polyethylene film marked with the 
SPI resin identification code 2 or low-den-
sity polyethylene film marked with the SPI 
resin identification code 4, 
‘‘(B) places at each place of business at 
which retail operations are conducted one or 
more plastic carryout bag collection bins which 
are visible, easily accessible to the customer, 
and clearly marked as being for the purpose of 
collecting and recycling plastic carryout bags, 
‘‘(C) recycles the plastic carryout bags col-
lected pursuant to subparagraph (B), 
‘‘(D) maintains for not less than 3 years 
records (which shall be available to the Sec-
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retary) describing the collection, transport, and 
recycling of plastic carryout bags collected, 
‘‘(E) makes available to customers within 
the retail establishment reusable bags (as de-
fined in section 4056(c)(2)) which may be pur-
chased and used in lieu of using a single-use 
carryout bag, and 
‘‘(F) meets the definition of section 
4056(d)(3). 
‘‘(2) RECYCLING
PROGRAM.—The term ‘recy-
cling program’ means a program that processes used 
materials or waste materials into new products to 
prevent waste of potentially useful materials; reduce 
raw materials consumption; reduce energy usage; re-
duce air, water, or other pollution; or reduce the 
need for disposal.’’. 
(c) ESTABLISHMENT OF TRUST FUND.—Subchapter 
A of chapter 98 of such Code (relating to trust fund code) 
is amended by adding at the end the following: 
‘‘SEC. 9512. CARRYOUT BAG TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund 
to be known as the ‘Carryout Bag Trust Fund’ (referred 
to in this section as the ‘Trust Fund’), consisting of such 
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amounts as may be appropriated or credited to the Trust 
Fund as provided in this section or section 9602(b). 
‘‘(b) TRANSFERS TO TRUST FUND.—There is hereby 
appropriated to the Trust Fund an amount equivalent to 
the amounts received in the Treasury pursuant to section 
4056. 
‘‘(c) EXPENDITURES FROM TRUST FUND.—Amounts 
in the Trust Fund shall be available, as provided by appro-
priation Acts, for making payments under section 6433. 
‘‘(d) TRANSFER TO LAND AND WATER CONSERVA-
TION FUND.— 
‘‘(1) IN
GENERAL.—The Secretary shall pay 
from time to time from the Trust Fund into the 
Land and Water Conservation Fund provided for in 
title I of the Land and Water Conservation Fund 
Act of 1965 amounts (as determined by the Sec-
retary) equivalent to the aggregate of the trans-
actions on which tax is imposed under section 4056 
aggregate amounts determined on the basis of 
$0.06. 
‘‘(2) SPECIAL
RULE
REGARDING
AMOUNTS 
TRANSFERRED.—Amounts transferred to the Land 
and Water Conservation Fund under paragraph (1) 
shall not be taken into account for purposes of de-
termining amounts to be appropriated or credited to 
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the fund under section 2(c) of the Land and Water 
Conservation Fund Act of 1965 (16 U.S.C. 460l– 
5(c)).’’. 
(d) STUDY.—Not later than December 31, 2017, the 
Comptroller General of the United States shall conduct 
a study on the effectiveness of the provisions of this Act 
at reducing the use of carryout bags and encouraging re-
cycling of such bags. The report shall address— 
(1) measures that the Comptroller General de-
termines may increase the effectiveness of such pro-
visions, including the amount of tax imposed on each 
carryout bag, and 
(2) any effects, both positive and negative, on 
any United States businesses. 
The Comptroller General shall submit a report of such 
study to the Committee on Ways and Means of the House 
of Representatives and the Committee on Finance of the 
Senate. 
(e) CLERICAL AMENDMENTS.— 
(1) The table of subchapters for chapter 31 of 
such Code is amended by inserting after the item re-
lating to subchapter C the following new item: 
‘‘Subchapter D. Carryout bags.’’. 
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(2) The table of sections for subchapter B of 
chapter 65 of such Code is amended by adding at 
the end the following new item: 
‘‘Sec. 6433. Qualified plastic carryout bag recycling program.’’. 
(3) The table of sections for subchapter A of 
chapter 98 of such Code is amended by adding at 
the end the following new item: 
‘‘Sec. 9512. Carryout bag trust fund.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on July 1, 2016. 
Æ 
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