H. R. 1424—86 
‘‘(iv) which is— 
‘‘(I) acquired by purchase (as defined in section 
179(d)(2)) by the taxpayer after August 31, 2008, 
but only if no written binding contract for the 
acquisition was in effect before September 1, 2008, 
or 
‘‘(II) acquired by the taxpayer pursuant to a 
written binding contract which was entered into 
after August 31, 2008. 
‘‘(B) EXCEPTIONS.— 
‘‘(i) BONUS DEPRECIATION PROPERTY UNDER SUB-
SECTION (k).—The term ‘qualified reuse and recycling 
property’ shall not include any property to which sec-
tion 168(k) applies. 
‘‘(ii) ALTERNATIVE DEPRECIATION PROPERTY.—The 
term ‘qualified reuse and recycling property’ shall not 
include any property to which the alternative deprecia-
tion system under subsection (g) applies, determined 
without regard to paragraph (7) of subsection (g) 
(relating to election to have system apply). 
‘‘(iii) ELECTION OUT.—If a taxpayer makes an elec-
tion under this clause with respect to any class of 
property for any taxable year, this subsection shall 
not apply to all property in such class placed in service 
during such taxable year. 
‘‘(C) SPECIAL RULE FOR SELF-CONSTRUCTED PROPERTY.— 
In the case of a taxpayer manufacturing, constructing, 
or producing property for the taxpayer’s own use, the 
requirements of clause (iv) of subparagraph (A) shall be 
treated as met if the taxpayer begins manufacturing, con-
structing, or producing the property after August 31, 2008. 
‘‘(D) DEDUCTION
ALLOWED
IN
COMPUTING
MINIMUM 
TAX.—For purposes of determining alternative minimum 
taxable income under section 55, the deduction under sub-
section (a) for qualified reuse and recycling property shall 
be determined under this section without regard to any 
adjustment under section 56. 
‘‘(3) DEFINITIONS.—For purposes of this subsection— 
‘‘(A) REUSE AND RECYCLING PROPERTY.— 
‘‘(i) IN GENERAL.—The term ‘reuse and recycling 
property’ means any machinery and equipment (not 
including buildings or real estate), along with all 
appurtenances thereto, including software necessary 
to operate such equipment, which is used exclusively 
to collect, distribute, or recycle qualified reuse and 
recyclable materials. 
‘‘(ii) EXCLUSION.—Such term does not include 
rolling stock or other equipment used to transport 
reuse and recyclable materials. 
‘‘(B) QUALIFIED REUSE AND RECYCLABLE MATERIALS.— 
‘‘(i) IN GENERAL.—The term ‘qualified reuse and 
recyclable materials’ means scrap plastic, scrap glass, 
scrap textiles, scrap rubber, scrap packaging, recovered 
fiber, scrap ferrous and nonferrous metals, or electronic 
scrap generated by an individual or business. 
‘‘(ii) ELECTRONIC SCRAP.—For purposes of clause 
(i), the term ‘electronic scrap’ means—
H. R. 1424—87 
‘‘(I) any cathode ray tube, flat panel screen, 
or similar video display device with a screen size 
greater than 4 inches measured diagonally, or 
‘‘(II) any central processing unit. 
‘‘(C) RECYCLING OR RECYCLE.—The term ‘recycling’ or 
‘recycle’ means that process (including sorting) by which 
worn or superfluous materials are manufactured or proc-
essed into specification grade commodities that are suitable 
for use as a replacement or substitute for virgin materials 
in manufacturing tangible consumer and commercial prod-
ucts, including packaging.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to property placed in service after August 31, 2008. 
TITLE IV—REVENUE PROVISIONS 
SEC. 401. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE 
TO DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY 
PRODUCTS THEREOF. 
(a) IN GENERAL.—Section 199(d) is amended by redesignating 
paragraph (9) as paragraph (10) and by inserting after paragraph 
(8) the following new paragraph: 
‘‘(9) SPECIAL RULE FOR TAXPAYERS WITH OIL RELATED QUALI-
FIED PRODUCTION ACTIVITIES INCOME.— 
‘‘(A) IN GENERAL.—If a taxpayer has oil related quali-
fied production activities income for any taxable year begin-
ning after 2009, the amount otherwise allowable as a 
deduction under subsection (a) shall be reduced by 3 per-
cent of the least of— 
‘‘(i) the oil related qualified production activities 
income of the taxpayer for the taxable year, 
‘‘(ii) the qualified production activities income of 
the taxpayer for the taxable year, or 
‘‘(iii) taxable income (determined without regard 
to this section). 
‘‘(B) OIL RELATED QUALIFIED PRODUCTION ACTIVITIES 
INCOME.—For purposes of this paragraph, the term ‘oil 
related qualified production activities income’ means for 
any taxable year the qualified production activities income 
which is attributable to the production, refining, processing, 
transportation, or distribution of oil, gas, or any primary 
product thereof during such taxable year. 
‘‘(C) PRIMARY PRODUCT.—For purposes of this para-
graph, the term ‘primary product’ has the same meaning 
as when used in section 927(a)(2)(C), as in effect before 
its repeal.’’. 
(b) CONFORMING AMENDMENT.—Section 199(d)(2) (relating to 
application to individuals) is amended by striking ‘‘subsection 
(a)(1)(B)’’ and inserting ‘‘subsections (a)(1)(B) and (d)(9)(A)(iii)’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008.