or covered item into the United States for consump-
tion, use, or warehousing. 
‘‘(b) FRACTION OF A POUND.—In the case of a frac-
tion of a pound, the tax imposed by section 4691 shall 
be the same fraction of the amount of such tax imposed 
on a whole pound. 
‘‘(c) USE TREATED AS SALE.—If any applicable enti-
ty manufactures, produces, or imports any taxable virgin 
plastic resin and uses such resin, then such person shall 
be liable for tax under section 4691 in the same manner 
as if such resin were sold by such entity. 
‘‘(d) EXCEPTION FOR CERTAIN USES.— 
‘‘(1) IN
GENERAL.—Under regulations pre-
scribed by the Secretary, in the case of any taxable 
virgin plastic resin for which the manufacturer, pro-
ducer, or importer of such resin— 
‘‘(A) certifies that such resin will only be 
used in the manufacture or production within 
the United States of any product which is not 
a covered item, and 
‘‘(B) satisfies the registration requirements 
under paragraph (2), 
no tax shall be imposed under section 4691(a)(1). 
‘‘(2) REGISTRATION.— 
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‘‘(A) IN GENERAL.—With respect to any 
taxable year, the Secretary shall require any 
person seeking an exemption under paragraph 
(1) to register with the Secretary at such time, 
in such form and manner, and subject to such 
terms and conditions, as the Secretary may by 
regulations prescribe. A registration under this 
paragraph may be used only in accordance with 
regulations prescribed under this paragraph. 
‘‘(B) REGISTRATION IN EVENT OF CHANGE 
IN OWNERSHIP.—Under regulations prescribed 
by the Secretary, a person (other than a cor-
poration the stock of which is regularly traded 
on an established securities market) shall be re-
quired to re-register under this paragraph if 
after a transaction (or series of related trans-
actions) more than 50 percent of ownership in-
terests in, or assets of, such person are held by 
persons other than persons (or persons related 
thereto) who held more than 50 percent of such 
interests or assets before the transaction (or se-
ries of related transactions). 
‘‘(C) DENIAL, REVOCATION, OR
SUSPEN-
SION OF REGISTRATION.—Rules similar to the 
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rules of section 4222(c) shall apply to registra-
tion under this paragraph. 
‘‘(D) 
INFORMATION
REPORTING.—The 
Secretary may require— 
‘‘(i) information reporting by any per-
son registered under this paragraph, and 
‘‘(ii) information reporting by such 
other persons as the Secretary deems nec-
essary to carry out this paragraph. 
‘‘(3) SALES TO CERTAIN SMALL BUYERS.— 
‘‘(A) IN
GENERAL.—Under regulations 
prescribed by the Secretary, in the case of any 
taxable virgin plastic resin which is sold by the 
manufacturer, producer, or importer of such 
resin to a person who— 
‘‘(i) meets the gross receipts test of 
section 448(c) for the taxable year in 
which such resin is sold, and 
‘‘(ii) provides such manufacturer, pro-
ducer, or importer with a certificate which 
includes— 
‘‘(I) the name and address of 
such person, 
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‘‘(II) the applicable period (not 
to exceed 4 calendar quarters) for 
which the certificate applies, and 
‘‘(III) a statement that— 
‘‘(aa) such person satisfies 
the requirement under clause (i), 
and 
‘‘(bb) such resin will only be 
used in the manufacture or pro-
duction within the United States 
of any product which is not a 
covered item, 
no 
tax 
shall 
be 
imposed 
under 
section 
4691(a)(1). 
‘‘(4) TAXATION OF NONQUALIFIED USE.—For 
purposes of section 4691(a)(1), if no tax was im-
posed by such section on the sale of any taxable vir-
gin plastic resin by reason of paragraph (1) or para-
graph (3), the first person who uses such resin in 
a manner other than a use described in such para-
graph shall be treated as the manufacturer of such 
resin. 
‘‘(e) REFUND OR CREDIT FOR CERTAIN USES.— 
Under regulations prescribed by the Secretary, if— 
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‘‘(1) a tax under section 4691(a)(1) was paid 
with respect to any taxable virgin plastic resin, and 
‘‘(2) such resin was used by any person in the 
manufacture or production within the United States 
of any product which is not a covered item, 
then an amount equal to the tax so paid shall be allowed 
as a credit or refund (without interest) to such person in 
the same manner as if it were an overpayment of tax im-
posed by such section. 
‘‘(f) DISPOSITION
OF REVENUES FROM PUERTO 
RICO AND THE VIRGIN ISLANDS.—The provisions of sub-
sections (a)(3) and (b)(3) of section 7652 shall not apply 
to any tax imposed by section 4691. 
‘‘(g) IMPOSITION OF FLOOR STOCKS TAXES.— 
‘‘(1) IN GENERAL.— 
‘‘(A) IN GENERAL.—If, on any tax-increase 
date, any taxable virgin plastic resin or im-
ported covered item is held by any person 
(other than the manufacturer, producer, or im-
porter thereof) for sale or for use in further 
manufacture, there is hereby imposed a floor 
stocks tax. 
‘‘(B) AMOUNT OF TAX.—The amount of 
the tax imposed by subparagraph (A) shall be 
the excess (if any) of— 
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‘‘(i) the tax which would be imposed 
under section 4691— 
‘‘(I) in the case of any taxable 
virgin plastic resin, on such resin if 
the sale of such resin by the applica-
ble entity had occurred on the tax-in-
crease date, or 
‘‘(II) in the case of any imported 
covered item, on such item if the 
entry or withdrawal of such item by 
the importer thereof had occurred on 
the tax-increase date, over 
‘‘(ii) the prior tax (if any) imposed by 
this subchapter on such resin or item. 
‘‘(C) TAX-INCREASE DATE.—For purposes 
of this paragraph, the term ‘tax-increase date’ 
means January 1 of any calendar year. 
‘‘(2) DUE DATE.—The taxes imposed by this 
subsection on January 1 of any calendar year shall 
be paid on or before June 30 of such year. 
‘‘(3) APPLICATION OF OTHER LAWS.—All other 
provisions of law, including penalties, applicable with 
respect to the taxes imposed by section 4691 shall 
apply to the floor stocks taxes imposed by this sub-
section. 
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‘‘(h) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary to carry out the pro-
visions of this subchapter.’’. 
(b) PLASTIC
WASTE
REDUCTION
FUND.—Sub-
chapter A of chapter 98 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 9512. PLASTIC WASTE REDUCTION FUND. 
‘‘(a) ESTABLISHMENT
AND
FUNDING.—There is 
hereby established in the Treasury of the United States 
a trust fund to be referred to as the ‘Plastic Waste Reduc-
tion Fund’, consisting of such amounts as may be appro-
priated or credited to such trust fund as provided for in 
this section and section 9602(b). 
‘‘(b) TRANSFERS TO THE PLASTIC WASTE REDUC-
TION FUND.—There are hereby appropriated to the Plas-
tic Waste Reduction Fund amounts equivalent to the taxes 
received in the Treasury under section 4691. 
‘‘(c) EXPENDITURES FROM
THE PLASTIC WASTE 
REDUCTION FUND.—Subject to subsection (d), amounts 
in the Plastic Waste Reduction Fund shall be available, 
as provided by appropriation Acts, for making expendi-
tures— 
‘‘(1) to carry out reduction, recycling, and reuse 
activities, including— 
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‘‘(A) making improvements to recycling in-
frastructure, or 
‘‘(B) establishing or improving infrastruc-
ture for reuse and refill systems, 
‘‘(2) to carry out plastic waste and marine de-
bris reduction, detection, monitoring, and cleanup 
activities of— 
‘‘(A) the grant programs established under 
section 302 of the Save Our Seas 2.0 Act (33 
U.S.C. 4282), 
‘‘(B) the Marine Debris Program estab-
lished by section 3 of the Marine Debris Act 
(33 U.S.C. 1952), 
‘‘(C) the Marine Debris Foundation estab-
lished by section 111 of the Save Our Seas 2.0 
Act (33 U.S.C. 4211), and 
‘‘(D) other Federal programs carrying out 
such activities, and 
‘‘(3) to address environmental justice and pollu-
tion impacts from plastic production. 
‘‘(d) PROHIBITION ON CERTAIN EXPENDITURES.— 
No amount in the Plastic Waste Reduction Fund shall be 
available for making any expenditure relating to— 
‘‘(1) the use of waste— 
‘‘(A) as a fuel or fuel substitute, 
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‘‘(B) for energy production, 
‘‘(C) for alternative daily cover, or 
‘‘(D) within the footprint of a landfill, or 
‘‘(2) the conversion of waste into alternative 
products (such as chemicals, feedstocks, fuels, or en-
ergy) through— 
‘‘(A) incineration, 
‘‘(B) pyrolysis, 
‘‘(C) hydropyrolysis, 
‘‘(D) methanolysis, 
‘‘(E) gasification, or 
‘‘(F) any method similar to the methods 
described in subparagraphs (A) through (E), as 
identified by the Secretary.’’. 
(c) CLERICAL AMENDMENTS.— 
(1) The table of subchapters for chapter 38 of 
the Internal Revenue Code of 1986 is amended by 
adding at the end the following new item: 
‘‘SUBCHAPTER E—TAX ON PLASTICS’’. 
(2) 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. Plastic Waste Reduction Fund.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on January 1, 2024. 
Æ 
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