[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2456 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2456

   To amend the Internal Revenue Code of 1986 in order to provide an 
 incentive for business to invest in pollution abatement property and 
                            related assets.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 17, 1993

   Mr. Payne of New Jersey introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 in order to provide an 
 incentive for business to invest in pollution abatement property and 
                            related assets.

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

SECTION 1. AMENDMENT OF DEPRECIATION RULES RELATING TO CERTAIN 
              ENVIRONMENTAL PROPERTY.

    (a) General Rule.--Section 168(e)(3)(B) of the Internal Revenue 
Code of 1986 is amended by striking ``and'' at the end of clause (v), 
by striking the period at the end of clause (vi) and inserting ``, 
and'', and by adding after clause (vi) the following new clause:
                            ``(vii) any environmental property.''
    (b) Environmental Property.--Section 168(i) of such Code is amended 
by adding at the end thereof the following new paragraph:
            ``(14) Environmental property.--The term `environmental 
        property' means any identifiable item of property--
                    ``(A) which is used in connection with a plant or 
                other property in operation before January 1, 1994, to 
                prevent, abate or control water or atmospheric 
                pollution or contamination by removing, altering, 
                disposing, storing or preventing the creation or 
                emission of pollutants (including dust), contaminants, 
                wastes, or heat, and property which monitors the 
                creation or emission of pollutants (including dust), 
                contaminants, wastes, or heat,
                    ``(B) which does not significantly--
                            ``(i) increase the output or capacity, 
                        extend the useful life, or reduce the total 
                        operating costs of such plant or other property 
                        (or any unit thereof), or
                            ``(ii) alter the nature of the 
                        manufacturing or production process or 
                        facility, and
                    ``(C) which is not a building or its structural 
                components, other than a building which is exclusively 
                a facility described in subparagraph (A).''
    (c) Alternative Depreciation System.--Paragraph (3) of section 
168(g) of such Code is amended by adding at the end thereof the 
following new subparagraph:
                    ``(F) Environmental property.--In the case of 
                environmental property (other than property described 
                in subparagraph (A) or (D) of paragraph (1)), the 
                recovery period used for purposes of paragraph (2) 
                shall be--
                            ``(i) 5 years if the average annual gross 
                        receipts of the taxpayer for the 3 taxable 
                        years preceding the taxable year in which the 
                        property is placed in service exceeds 
                        $250,000,000,
                            ``(ii) 3 years if such average annual gross 
                        receipts exceeds $100,000,000 but does not 
                        exceed $250,000,000, and
                            ``(iii) 1 year if such average annual gross 
                        receipts does not exceed $100,000,000.
                For purposes of the preceding sentence, rules similar 
                to the rules of paragraphs (2) and (3) of section 
                448(c) shall apply.''
    (d) Alternative Minimum Tax.--
            (1) Paragraph (1)(B) of section 56(a) of such Code is 
        amended by inserting before the period ``or in paragraph (14) 
        of section 168(i)''.
            (2) Paragraph (4)(A)(v) of section 56(g) of such Code is 
        amended by inserting ``or in paragraph (14) of section 168(i)'' 
        after ``section 168(f)''.
    (e) Repeal of Section 169.--
            (1) Section 169 of such Code is hereby repealed.
            (2) The table of sections for part VI of subchapter B of 
        chapter 1 of such Code is amended by striking the item relating 
        to section 169.
    (f) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 1993, in taxable 
years ending after such date.

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