I 
109TH CONGRESS 
1ST SESSION H. R. 1723 
To amend the Internal Revenue Code of 1986 to allow a credit against 
income tax for recycling or remanufacturing equipment, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 20, 2005 
Mr. BRADLEY of New Hampshire 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 allow a 
credit against income tax for recycling or remanufac-
turing equipment, and for other purposes. 
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 
(1), by striking the period at the end of paragraph (2)
and inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(3) the reclamation credit.’’ 
(b) RECLAMATION CREDIT.—Section 48 of such Code 
(relating to energy credit) is amended by adding at the 
end the following new subsection: 
‘‘(c) RECLAMATION CREDIT.— 
‘‘(1) 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. 
‘‘(2) QUALIFIED RECLAMATION PROPERTY.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘qualified reclamation 
property’ means property— 
‘‘(i) which is qualified recycling prop-
erty or qualified remanufacturing property, 
‘‘(ii) which is tangible property (not 
including a building and its structural 
components), 
‘‘(iii) with respect to which deprecia-
tion (or amortization in lieu of deprecia-
tion) is allowable, 
‘‘(iv) which has a useful life of at least 
5 years, and
‘‘(v) which is— 
‘‘(I) acquired by purchase (as de-
fined in section 179(d)(2)) by the tax-
payer if the original use of such prop-
erty commences with the taxpayer, or 
‘‘(II) constructed by or for the 
taxpayer. 
‘‘(B) DOLLAR LIMITATION.— 
‘‘(i) IN GENERAL.—The basis of quali-
fied reclamation property taken into ac-
count under paragraph (1) for any taxable 
year shall not exceed $10,000,000 for a 
taxpayer. 
‘‘(ii) TREATMENT
OF
CONTROLLED 
GROUP.—For purposes of clause (i)— 
‘‘(I) all component members of a 
controlled group shall be treated as 
one taxpayer, and 
‘‘(II) the Secretary shall appor-
tion the dollar limitation in such 
clause among the component members 
of such controlled group in such man-
ner as he shall by regulation pre-
scribe.
‘‘(iii) TREATMENT OF PARTNERSHIPS 
AND S CORPORATIONS.—In the case of a 
partnership, the dollar limitation in clause 
(i) shall apply with respect to the partner-
ship and with respect to each partner. A 
similar rule shall apply in the case of an 
S corporation and its shareholders. 
‘‘(iv) 
CONTROLLED
GROUP
DE-
FINED.—For purposes of clause (ii), the 
term ‘controlled group’ has the meaning 
given such term by section 1563(a), except 
that ‘more than 50 percent’ shall be sub-
stituted for ‘at least 80 percent’ each place 
it appears in section 1563(a)(1). 
‘‘(3) CERTAIN PROGRESS EXPENDITURE RULES 
MADE APPLICABLE.—Rules similar to the rules of 
subsections (c)(4) and (d) of section 46 (as in effect 
on the day before the date of the enactment of the 
Revenue Reconciliation Act of 1990) shall apply for 
purposes of this subsection. 
‘‘(4) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) QUALIFIED RECYCLING PROPERTY.— 
The term ‘qualified recycling property’ means 
equipment used exclusively to collect, distribute,