I
106TH CONGRESS
2D SESSION
H. R. 4916
To amend the Internal Revenue Code of 1986 to increase the aggregate
cost of certain reusable pallets and containers and related property which
may be expensed under section 179.
IN THE HOUSE OF REPRESENTATIVES
JULY 20, 2000
Mr. ROHRABACHER (for himself and Mr. MATSUI) 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 increase
the aggregate cost of certain reusable pallets and con-
tainers and related property which may be expensed
under section 179.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Landfill Reduction Act
of 2000’’.
SEC. 2. FINDINGS.
Congress finds that:
(1) While most forms of pollution are steadily
being reduced in the United States, solid waste dis-
cards are projected to increase by 10 percent be-
tween 2000 and 2010, based on Environmental Pro-
tection Agency data.
(2) American consumers and businesses spend
an estimated $1 billion annually to dispose of card-
board boxes and low quality shipping pallets.
(3) The cost of disposing of municipal solid
waste has been increasing at a 7 percent annual
rate.
(4) There are regional shortages of solid waste
disposal capacity, and siting new facilities is conten-
tious for local governments. These conditions will be
exacerbated by the growth of solid waste discards.
(5) There are already spirited interstate dis-
putes, expressed in litigation and legislation, regard-
ing efforts to regulate interstate shipment of solid
waste.
(6) Dozens of other nations are pursuing regu-
latory approaches and surtaxes to reduce the
amount of solid waste from packaging.
(7) The Pollution Prevention Act of 1990 estab-
lishes a hierarchy for handling waste, with source re-
duction and reuse being preferable to recycling.
(8) It is in the national environmental and eco-
nomic interest to reaffirm and emphasize the Pollu-
tion Prevention Act of 1990’s priority on source re-
duction and reuse, without resorting to new Federal
regulatory requirements or new Federal taxes.
(9) Emerging industry has the means to dra-
matically reduce the amount of packaging waste,
thereby conserving solid waste disposal capacity, im-
proving the environment, and reducing unnecessary
costs to consumers, local governments, and business
alike.
SEC. 3. PURPOSE.
The purpose of this Act is to provide tax incentives
to encourage the utilization of reusable wooden and plastic
pallets and plastic containers in order to fulfill the goals
of the Pollution Prevention Act of 1990, improve national
environmental quality through reduced solid waste, in-
crease economic productivity by reducing the costs associ-
ated with waste disposal, reduce inflationary pressures as-
sociated with the escalating cost of waste disposal, reduce
friction among the States concerning interstate solid waste
transportation, and provide a cost-efficient nonregulatory
model for addressing environmental problems.
SEC. 4. INCREASE IN AGGREGATE COST OF REUSABLE PAL-
LETS AND CONTAINERS AND CERTAIN RE-
LATED PROPERTY WHICH MAY BE EXPENSED.
(a) IN GENERAL.—Section 179 of the Internal Rev-
enue Code of 1986 (relating to election to expense certain
depreciable business assets) is amended by adding at the
end the following new subsection:
‘‘(e) INCREASED EXPENSING FOR REUSABLE PAL-
LETS AND CONTAINERS AND CERTAIN RELATED PROP-
ERTY.—
‘‘(1) IN GENERAL.—The limitation under sub-
section (b)(1) (after the application of paragraph (2)
and before the application of paragraph (3) of such
subsection) shall not be less than an amount equal
to the lesser of—
‘‘(A) $500,000, or
‘‘(B) the cost of section 179 property
which is qualified reusable pallet and container
property placed in service during the taxable
year.
‘‘(2) QUALIFIED REUSABLE PALLET AND CON-
TAINER
PROPERTY.—For 
purposes 
of 
this
subsection—
‘‘(A) IN
GENERAL.—The term ‘qualified
reusable pallet and container property’ means—
‘‘(i) property designed exclusively to
manufacture reusable pallet and container
property,
‘‘(ii) reusable pallet and container
property used exclusively to transport
items manufactured or produced by the
taxpayer but only if—
‘‘(I) such transportation is under
an arrangement for the return of such
property to the taxpayer for reuse,
and
‘‘(II) such property does not re-
place other reusable pallet and con-
tainer property,
‘‘(iii) property designed exclusively for
purposes of inspecting, repairing, cleaning,
or maintaining reusable pallet and con-
tainer property and used exclusively for
such purposes with respect to reusable pal-
let and container property owned or leased
by the taxpayer,
‘‘(iv) property designed exclusively to
accommodate the use, or enhance the effi-
ciency, of any reusable pallet and container
property associated with harvesting, pack-
ing, handling, or storage of agricultural
products, and
‘‘(v) property which modifies a display
for the retail sale of an item exclusively for
purposes of permitting such item to be dis-
played in the reusable pallet and container
property in which such item was trans-
ported.
‘‘(B) SUBSECTION NOT TO APPLY TO CER-
TAIN VEHICLES.—The term ‘qualified reusable
pallet and container property’ shall not include
automobiles, vessels, aircraft, trucks, forklifts,
pallet jacks, or rolling stock or other similar
property.
‘‘(3) REUSABLE PALLET AND CONTAINER PROP-
ERTY.—For purposes of this subsection, the term
‘reusable pallet and container property’ means any
wooden or plastic pallet or plastic crate which is
under an arrangement for the repeated return of
such property to its initial purchaser, for long-term
reuse.
‘‘(4) TERMINATION.—This subsection shall not
apply to any taxable year beginning after December
31, 2008.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
the date of the enactment of this Act.
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