Protect America's Paper for Recycling Act
Bill: S.1376 | Sponsor: Sen. Stabenow, Debbie (D-MI)
Policy area: Taxation

Summary:
Protect America's Paper for Recycling Act
This bill modifies the tax credit for producing electricity from renewable resources to revise the definition of municipal solid waste.
The bill specifies that municipal solid waste does not include paper that is commonly recycled and that has been segregated from other solid waste, or solid waste that is collected as part of a system that does not provide for the separate collection of paper that is commonly recycled from residential solid waste. The bill includes exceptions for incidental and residual waste.
In the case of a facility that produces electricity both from municipal solid waste and other solid waste that is not a qualified energy resource (1) the facility is a qualified facility if it otherwise meets the requirements for qualified facilities, and (2) the credit only applies to the portion of the electricity produced from municipal solid waste.

To amend the Internal Revenue Code of 1986 to modify the definition of 
                         municipal solid waste.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protect America's Paper for 
Recycling Act''.

SEC. 2. MODIFICATION TO DEFINITION OF MUNICIPAL SOLID WASTE.

    (a) In General.--Paragraph (6) of section 45(c) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(6) Municipal solid waste.--
                    ``(A) In general.--The term `municipal solid waste' 
                has the meaning given the term `solid waste' under 
                section 1004(27) of the Solid Waste Disposal Act (42 
                U.S.C. 6903(27)), except that such term does not 
                include--
                            ``(i) paper which is commonly recycled and 
                        which has been segregated from other solid 
                        waste (as so defined), or
                            ``(ii) solid waste (as so defined) which is 
                        collected as part of a system which does not 
                        provide for the separate collection of paper 
                        which is commonly recycled from residential 
                        solid waste (as defined in section 246.101 of 
                        title 40, Code of Federal Regulations).
                    ``(B) Special rule with respect to incidental and 
                residual waste.--Subparagraph (A)(ii) shall not apply 
                to--
                            ``(i) solid waste (as so defined) which 
                        only contains an incidental amount of commonly 
                        recycled paper, and
                            ``(ii) solid waste (as so defined) which is 
                        residual waste generated at a materials 
                        recovery facility that receives and processes 
                        only paper and other recyclable materials 
                        containing no more than an incidental amount of 
                        non-recyclable solid waste.
                    ``(C) No effect on existing processes.--Nothing in 
                subparagraph (A) shall be interpreted to require a 
                State or a political subdivision of a State, directly 
                or indirectly, to change the systems, processes, or 
                equipment it uses to collect, treat, dispose, or 
                otherwise use municipal solid waste, within the meaning 
                of the Solid Waste Disposal Act (42 U.S.C. 6903 et 
                seq.), nor require a change to the regulations that 
                implement subtitle D of such Act (42 U.S.C. 6901 et 
                seq.).''.
    (b) Rules With Respect to Electricity Produced From Solid Waste.--
Subsection (e) of section 45 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new paragraph:
            ``(12) Source of municipal solid waste feedstock.--In the 
        case of a qualified facility that produces electricity both 
        from municipal solid waste and other solid waste that is not a 
        qualified energy resource--
                    ``(A) such facility shall be considered a qualified 
                facility if it otherwise meets the requirements of 
                subsection (d), and
                    ``(B) subsection (a) shall only apply to that 
                portion of the electricity produced from municipal 
                solid waste.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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