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. SENSEN-
BRENNER) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow a 
credit against income tax for recycling or remanufac-
turing equipment. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. CREDIT FOR RECYCLING OR REMANUFAC-
TURING EQUIPMENT. 
(a) IN GENERAL.—Section 46 of the Internal Rev-
enue Code of 1986 (relating to amount of investment cred-
it) is amended by striking ‘‘and’’ at the end of paragraph 
(3), by striking the period at the end of paragraph (4) 
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and inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(5) the reclamation credit.’’. 
(b) RECLAMATION CREDIT.—Subpart E of part IV 
of subchapter A of chapter 1 of such Code (relating to 
rules for computing investment credit) is amended by in-
serting after section 48B the following new section: 
‘‘SEC. 48C. RECYCLING OR REMANUFACTURING EQUIP-
MENT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
reclamation credit for any taxable year is 20 percent of 
the basis of each qualified reclamation property placed in 
service during the taxable year. 
‘‘(b) QUALIFIED RECLAMATION PROPERTY.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified reclamation property’ means 
property— 
‘‘(A) which is qualified recycling property 
or qualified remanufacturing property, 
‘‘(B) which is tangible property (not in-
cluding a building and its structural compo-
nents), 
‘‘(C) with respect to which depreciation (or 
amortization in lieu of depreciation) is allow-
able, 
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‘‘(D) which has a useful life of at least 5 
years, and 
‘‘(E) which is— 
‘‘(i) acquired by purchase (as defined 
in section 179(d)(2)) by the taxpayer if the 
original use of such property commences 
with the taxpayer, or 
‘‘(ii) constructed by or for the tax-
payer. 
‘‘(2) DOLLAR LIMITATION.— 
‘‘(A) IN GENERAL.—The basis of qualified 
reclamation property taken into account under 
paragraph (1) for any taxable year shall not ex-
ceed $10,000,000 for a taxpayer. 
‘‘(B) 
TREATMENT
OF
CONTROLLED 
GROUP.—For purposes of subparagraph (A)— 
‘‘(i) all component members of a con-
trolled group shall be treated as one tax-
payer, and 
‘‘(ii) the Secretary shall apportion the 
dollar limitation in such subparagraph 
among the component members of such 
controlled group in such manner as he 
shall by regulation prescribe. 
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‘‘(C) TREATMENT OF PARTNERSHIPS AND 
S CORPORATIONS.—In the case of a partner-
ship, the dollar limitation in subparagraph (A) 
shall apply with respect to the partnership and 
with respect to each partner. A similar rule 
shall apply in the case of an S corporation and 
its shareholders. 
‘‘(D) CONTROLLED GROUP DEFINED.—For 
purposes of subparagraph (B), the term ‘con-
trolled group’ has the meaning given such term 
by section 1563(a), except that ‘more than 50 
percent’ shall be substituted for ‘at least 80 
percent’ each place it appears in section 
1563(a)(1). 
‘‘(c) CERTAIN
PROGRESS
EXPENDITURE
RULES 
MADE APPLICABLE.—Rules similar to the rules of sub-
sections (c)(4) and (d) of section 46 (as in effect on the 
day before the date of the enactment of the Revenue Rec-
onciliation Act of 1990) shall apply for purposes of this 
subsection. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED RECYCLING PROPERTY.—The 
term ‘qualified recycling property’ means equipment 
used exclusively to collect, distribute, or sort used 
ferrous or nonferrous metals. The term does not in-
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