110 HR 5659 IH: To amend the Internal Revenue Code of 1986 to allow a
U.S. House of Representatives
2008-03-31
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Credit for recycling or
remanufacturing equipment
(a)Section 46 of the Internal Revenue Code of 1986 (relating
to amount of investment credit) is amended by striking and
at
the end of paragraph (3), by striking the period at the end of paragraph (4)
and inserting , and
, and by adding at the end the following new
paragraph:
(5)the reclamation
credit.
.
(b)Subpart E of part IV of subchapter A of chapter 1 of such
Code (relating to rules for computing investment credit) is amended by
inserting after section 48B the following new section:
48C.Recycling or
remanufacturing equipment
(a)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.
(b)Qualified
reclamation property
(1)For purposes of this section, the term qualified
reclamation property means property—
(A)which is qualified
recycling property or qualified remanufacturing property,
(B)which is tangible
property (not including a building and its structural components),
(C)with respect to
which depreciation (or amortization in lieu of depreciation) is
allowable,
(D)which has a useful
life of at least 5 years, and
(E)which is—
(i)acquired by
purchase (as defined in section 179(d)(2)) by the taxpayer if the original use
of such property commences with the taxpayer, or
(ii)constructed by or
for the taxpayer.
(2)
(A)The basis of qualified reclamation property taken into
account under paragraph (1) for any taxable year shall not exceed $10,000,000
for a taxpayer.
(B)Treatment of
controlled groupFor purposes of subparagraph (A)—
(i)all
component members of a controlled group shall be treated as one taxpayer,
and
(ii)the Secretary
shall apportion the dollar limitation in such subparagraph among the component
members of such controlled group in such manner as he shall by regulation
prescribe.
(C)Treatment of
partnerships and S corporationsIn the case of a partnership, the
dollar limitation in subparagraph (A) shall apply with respect to the
partnership and with respect to each partner. A similar rule shall apply in the
case of an S corporation and its shareholders.
(D)For purposes of subparagraph (B), the term
controlled group has the meaning given such term by section
1563(a), except that more than 50 percent
shall be substituted
for at least 80 percent
each place it appears in section
1563(a)(1).
(c)Certain progress
expenditure rules made applicableRules 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.
(d)For
purposes of this section—
(1)Qualified
recycling propertyThe term qualified recycling
property means equipment used exclusively to collect, distribute, or
sort used ferrous or nonferrous metals. The term does not include equipment
used to collect, distribute, or sort precious metals such as gold, silver, or
platinum unless such use is coincidental to the collection, distribution, or
sorting of other used ferrous or nonferrous metals.
(2)Qualified
remanufacturing propertyThe term qualified remanufacturing
property means equipment used primarily by the taxpayer in the business
of rebuilding or remanufacturing a used product or part, but only if—
(A)the rebuilt or
remanufactured product or part includes 50 percent or less virgin material,
and
(B)the equipment is
not used primarily in a process occurring after the product or part is rebuilt
or remanufactured.
(e)Coordination
with rehabilitation and energy creditsFor purposes of this
section—
(1)the basis of any
qualified reclamation property shall be reduced by that portion of the basis of
any property which is attributable to qualified rehabilitation expenditures (as
defined in section 47(c)(2)) or to the energy percentage of energy property (as
determined under section 48(a)), and
(2)expenditures taken
into account under either section 47 or 48(a) shall not be taken into account
under this
section.
.
(c)Special basis
adjustment ruleParagraph (3) of section 50(c) of such Code
(relating to basis adjustment to investment credit property) is amended by
inserting or reclamation credit
after energy
credit
.
(d)The table of sections for subpart E of part IV of
subchapter A of chapter 1 of such Code is amended by inserting after the item
relating to section 48B the following new item:
Sec. 48C. Recycling or remanufacturing
equipment.
.
(e)The amendments made by this section shall apply to property
placed in service on or after January 1, 2007.