I 
114TH CONGRESS 
2D SESSION 
H. R. 5194 
To amend the Internal Revenue Code of 1986 to allow a credit against 
tax for costs incurred by certain businesses for drug disposal programs. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 11, 2016 
Mr. BLUMENAUER 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 tax for costs incurred by certain businesses 
for drug disposal programs. 
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 ‘‘Safe Drug Disposal 
Tax Credit Act of 2016’’. 
SEC. 2. DRUG DISPOSAL PROGRAM CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
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‘‘SEC. 45S. DRUG DISPOSAL PROGRAM CREDIT. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
in the case of an eligible entity, the drug disposal program 
credit determined under this section for a taxable year is 
30 percent of the qualified drug disposal program costs 
of such entity for the taxable year. 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED
DRUG
DISPOSAL
PROGRAM 
COSTS.—The term ‘qualified drug disposal program 
costs’ means amounts paid or incurred by an eligible 
entity for establishing or maintaining a drug dis-
posal site, including amounts for materials for such 
site, outreach and training about the use of such 
site, and safe disposal of drugs collected at such site. 
‘‘(2) DRUG DISPOSAL SITE.—The term ‘drug 
disposal site’ means a location where individuals can, 
free of charge, deposit drugs to be disposed of le-
gally. 
‘‘(3) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means an entity authorized under the Con-
trolled Substances Act to dispose of controlled sub-
stances. 
‘‘(4) DRUG.—The term ‘drug’ has the meaning 
given such term in section 201 of the Federal Food, 
Drug, and Cosmetic Act and includes a biological 
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product, as defined in section 351 of the Public 
Health Service Act. 
‘‘(c) BASIS ADJUSTMENT.—If a credit is determined 
under this section with respect to any property, the basis 
of such property shall be reduced by the amount of the 
credit so determined.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of such Code is amended by 
striking ‘‘plus’’ at the end of paragraph (35), by 
striking the period at the end of paragraph (36) and 
inserting ‘‘, plus’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(37) in the case of an eligible entity (as de-
fined in section 45S(b)), the drug disposal program 
credit determined under section 45S.’’. 
(2) Section 1016(a) of such Code is amended 
by striking ‘‘and’’ at the end of paragraph (36), by 
striking the period at the end of paragraph (37) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(38) in the case of property with respect to 
which a credit was allowed under section 45S, to the 
extent provided in section 45S(c).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
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of such Code is amended by inserting after the item relat-
ing to section 45R the following new item: 
‘‘Sec. 45S. Drug disposal program credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section apply with respect to taxable years beginning 
after December 31, 2016. 
Æ 
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