S.Amdt. 3843

SA 3843. Mr. JEFFORDS submitted an amendment intended to be proposed to amendment SA 3700 submitted by Mr. Domenici (for himself, Mr. Grassley, and Mr. Stevens) and intended to be proposed to the bill H.R. 4939, making emergency supplemental appropriations for the fiscal year ending September 30, 2006, and for other purposes; which was ordered to lie on the table; as follows:

At the end of p. 4, line 17 of the amendment, insert the following section:

SEC. . CREDIT FOR EQUIPMENT FOR PROCESSING OR SORTING MATERIALS GATHERED THROUGH RECYCLING.

(a) In General.--Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code (relating to business-related credits), as amended by the Energy Policy Act of 2005 (Public Law 109-58), is amended by adding at the end the following new section:

“SEC. 45M. CREDIT FOR QUALIFIED RECYCLING EQUIPMENT.

“(a) Allowance of Credit.--For purposes of section 38, the qualified recycling equipment credit determined under this section for the taxable year is an amount equal to the amount paid or incurred during the taxable year for the cost of qualified recycling equipment placed in service or leased by the taxpayer.

“(b) Limitation.--The amount allowable as a credit under subsection (a) with respect to any qualified recycling equipment shall not exceed--

“(1) in the case of such equipment described in subsection (c)(1)(A)(i), 15 percent of the cost of such equipment, and

“(2) in the case of such equipment described in subsection (c)(1)(A)(ii), 15 percent of so much of the cost of each piece of equipment as exceeds $400,000.

“(c) Definitions.--For purposes of this section--

“(1) Qualified recycling equipment.--

“(A) In general.--The term ‘qualified recycling equipment' means equipment, including connecting piping--

“(i) employed in sorting or processing residential and commercial qualified recyclable materials described in paragraph (2)(A) for the purpose of converting such materials for use in manufacturing tangible consumer products, including packaging, or

“(ii) the primary purpose of which is the shredding and processing of qualified recyclable materials described in paragraph (2)(B).

“(B) Equipment at commercial or public venues included.--For purposes of subparagraph (A)(i), such term includes equipment which is utilized at commercial or public venues, including recycling collection centers, where the equipment is utilized to sort or process qualified recyclable materials for such purpose.

“(C) Exclusion.--Such term does not include rolling stock or other equipment used to transport recyclable materials.

“(2) Qualified recyclable materials.--The term ‘qualified recyclable materials' means--

“(A) any packaging or printed material which is glass, paper, plastic, steel, or aluminum, and

“(B) any electronic waste (including any cathode ray tube, flat panel screen, or similar video display device with a screen size greater than 4 inches measured diagonally, or a central processing unit), generated by an individual or business and which has been separated from solid waste for the purposes of collection and recycling.

“(3) Processing.--The term ‘processing' means the preparation of qualified recyclable materials into feedstock for use in manufacturing tangible consumer products.

“(d) Amount Paid or Incurred.--For purposes of this section--

“(1) In general.--The term ‘amount paid or incurred' includes installation costs.

“(2) Lease payments.--In the case of the leasing of qualified recycling equipment by the taxpayer, the term ‘amount paid or incurred' means the amount of the lease payments due to be paid during the term of the lease occurring during the taxable year other than such portion of such lease payments attributable to interest, insurance, and taxes.

“(3) Grants, etc. excluded.--The term ‘amount paid or incurred' shall not include any amount to the extent such amount is funded by any grant, contract, or otherwise by another person (or any governmental entity).

“(e) Other Tax Deductions and Credits Available for Portion of Cost Not Taken Into Account for Credit Under This Section.--No deduction or other credit under this chapter shall be allowed with respect to the amount of the credit determined under this section.

“(f) Basis Adjustments.--For purposes of this subtitle, if a credit is allowed under this section for any amount paid or incurred with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed.”.

(b) Conforming Amendments--

(1) Credit made part of general business credit.--Subsection (b) of section 38, as amended by this Act, is amended by striking “plus” at the end of paragraph (21), by striking the period at the end of paragraph (22) and inserting “, plus”, and by adding at the end the following new paragraph:

“(23) the qualified recycling equipment credit determined under section 45M(a).”.

(2) Subsection (a) of section 1016, as amended by this Act, is amended by striking “and” at the end of paragraph (37), by striking the period at the end of paragraph (38) and inserting “; and”, and by adding at the end the following new paragraph:

“(39) to the extent provided in section 45M(f), in the case of amounts with respect to which a credit has been allowed under section 45M.”.

(3) The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by this Act, is amended by inserting after the item relating to section 45L the following new item:

“Sec. 45M. Credit for qualified recycling equipment.”.

(c) Effective Date--The amendments made by this section shall apply to taxable years beginning after December 31, 2005.