I 
109TH CONGRESS 
1ST SESSION 
H. R. 320
To amend the Internal Revenue Code of 1986 to provide tax incentives 
to encourage manufacturers of computer, cell phone, and television equip-
ment to operate an environmentally sound recycling program for use 
by consumers who want to discard the equipment. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 25, 2005
Mr. CUNNINGHAM (for himself, Mr. CANTOR, and Mr. ISSA) 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 provide 
tax incentives to encourage manufacturers of computer, 
cell phone, and television equipment to operate an envi-
ronmentally sound recycling program for use by con-
sumers who want to discard the equipment.
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 ‘‘Tax Incentives to En-
courage Recycling Act of 2005’’ or the ‘‘TIER Act of 
2005’’.
SEC. 2. CREDIT FOR POST-CONSUMER RECYCLING OF COM-
PUTER, 
CELL 
PHONE, 
AND 
TELEVISION 
EQUIPMENT BY MANUFACTURERS OF THE 
EQUIPMENT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business-related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 45J. POST-CONSUMER RECYCLING OF COMPUTER, 
CELL PHONE, AND TELEVISION EQUIPMENT 
BY MANUFACTURERS OF THE EQUIPMENT. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
in the case of a manufacturer of computer equipment, 
wireless handheld telephone units, or televisions, the recy-
cling equipment credit determined under this section for 
the taxable year is the amount determined under sub-
section (b) for each item of such equipment—
‘‘(1) which was manufactured by such manufac-
turer, and 
‘‘(2) which is disposed of by such manufacturer 
pursuant to a qualified recycling program. 
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) COMPUTER.—The term ‘computer’ means 
an electronic, magnetic, optical, electrochemical, or 
other high speed data processing device performing 
logical, arithmetic, or storage functions, and may in-
clude both a central processing unit and a monitor, 
but such term does not include an automated type-
writer or typesetter, a portable hand held calculator, 
or other similar device. 
‘‘(2) CENTRAL PROCESSING UNIT.—The term 
‘central processing unit’ includes a case and all of its 
contents, such as the primary printed circuit board 
and its components, additional printed circuit 
boards, one or more disc drives, a transformer, inte-
rior wire, and a power cord. 
‘‘(3) MONITOR.—The term ‘monitor’ means a 
separate visual display component of a computer, 
whether sold separately or together with a central 
processing unit, and includes a cathode ray tube or 
liquid crystal display, its case, interior wires and cir-
cuitry, cable to the central processing unit, and 
power cord. 
‘‘(4) 
WIRELESS
HANDHELD
TELEPHONE 
UNIT.—The term ‘wireless handheld telephone unit’ 
includes the charging device for such unit, but such 
term does not include a cordless telephone designed 
for use in close proximity of a base unit. 
‘‘(5) QUALIFIED
RECYCLING
PROGRAM.—The 
term ‘qualified recycling program’ means any pro-
gram under which all parts of the computer or tele-
vision (including any hazardous waste, as defined in 
section 1004(5) of the Solid Waste Disposal Act (42 
U.S.C. 6903)) are disposed of in an environmentally 
sound and responsible manner. 
‘‘(c) AMOUNT OF CREDIT.—The amount of credit 
shall be determined as follows:
‘‘Type of item: 
Amount of 
credit: 
Central processing unit ...................................................................
$4
Monitor ...........................................................................................
$4
Printer ............................................................................................
$4
Mouse and Keyboard (both) ...........................................................
$1
Television ........................................................................................
$4
Wireless handheld telephone and charger (both) ...........................
$1.’’. 
(b) CONFORMING AMENDMENT.—Section 38(b) of 
such Code (relating to general business credit) is amended 
by striking ‘‘plus’’ at the end of paragraph (18), by strik-
ing the period at the end of paragraph (19) and inserting 
‘‘, plus’’, and by adding at the end the following new para-
graph: 
‘‘(20) in the case of a manufacturer of com-
puter equipment or televisions, the recycling equip-
ment credit determined under section 45G(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 45I the following new item:
‘‘Sec. 45J. Post-consumer recycling of computer, cell phone, and television 
equipment by manufacturers of the equipment.’’.
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act.
Æ