[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1684 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1684

   To amend the Internal Revenue Code of 1986 to allow a taxpayer a 
        deduction for equipment used for environmental purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            November 18 (legislative day, November 2), 1993

 Mr. Murkowski introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to allow a taxpayer a 
        deduction for equipment used for environmental purposes.

    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 ``Environmental Protection 
Encouragement Act of 1993''.

SEC. 2. ELECTION TO EXPENSE CERTAIN ENVIRONMENTAL PROPERTY.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding after section 179A 
the following new section:

``SEC. 179. ELECTION TO EXPENSE CERTAIN ENVIRONMENTAL IMPROVEMENT 
              PROPERTY.

    ``(a) Treatment as Expenses.--A taxpayer may elect to treat the 
cost of any environmental improvement property as an expense which is 
not chargeable to capital account. Any cost so treated shall be allowed 
as a deduction for the taxable year in which the environmental 
improvement property is placed in service.
    ``(b) Environmental Improvement Property.--For purposes of this 
subsection--
            ``(1) In general.--The term `environmental improvement 
        property' means tangible property which is acquired by purchase 
        for use in the active conduct of a trade or business and which 
        is--
                    ``(A) of a character subject to the allowance for 
                depreciation provided in section 167,
                    ``(B) used for one or more of the following 
                purposes--
                            ``(i) source reduction,
                            ``(ii) solid waste minimization,
                            ``(iii) waste conversion or recycling,
                            ``(iv) reduction of environmental hazards,
                            ``(v) compliance with environmental 
                        permits, rules, and similar requirements,
                            ``(vi) prevention, containment, or control 
                        of unplanned releases, or
                            ``(vii) the manufacture, distribution, and 
                        sale of alternate fuels and blending stocks or 
                        fuel additives for reformulated fuels, and
                    ``(C) located and used exclusively in the United 
                States during the taxable year.
        If only a portion of property described in subparagraphs (A) 
        and (C) is described in subparagraph (B), such portion shall be 
        treated as environmental improvement property. For purposes of 
        this paragraph, the term `United States' has the meaning given 
        such term by paragraph (1) of section 638 (relating to 
        continental shelf areas).
            ``(2) Other definitions.--For purposes of this subsection--
                    ``(A) Source reduction.--The term `source 
                reduction' means reduction of the amount of regulated 
                substances or other pollutants from fixed or mobile 
                sources released into the environment if such reduction 
                reduces hazards to public health or environment.
                    ``(B) Solid waste minimization.--The term `solid 
                waste minimization' means the reduction in the 
                generation of, or the recovery of commercially usable 
                products from, residual materials which are classified 
                as, or which if disposed would be classified as, solid 
                wastes (within the meaning of the Resource Conservation 
                and Recovery Act).
                    ``(C) Waste conversion or recycling.--The term 
                `waste conversion or recycling' means the processing or 
                conversion of liquid, solid, or gaseous wastes into 
                fuel, energy, or other commercially usable products, 
                and the production of such products if production 
                occurs at the same facility as the conversion.
                    ``(D) Abatement of environmental hazards.--The term 
                `abatement of environmental hazards' includes the 
                abatement, reduction, monitoring, or stabilization of 
                potential human exposure to toxic chemicals, hazardous 
                or extremely hazardous substances, or harmful 
                radiation.
                    ``(E) Unplanned releases.--The term `unplanned 
                releases' means any release of regulated substances 
                (except federally permitted releases), including indoor 
                releases.
                    ``(F) Regulated substance.--The term `regulated 
                substance' includes any substance the release or 
                emission of which is prohibited, limited, or regulated 
                by Federal or State law or by Federal regulations (as 
                determined without regard to whether a particular 
                release would have been prohibited or limited).
                    ``(G) Release.--The term `release' means any 
                spilling, leaking, pouring, discharging, escaping, 
                dumping, or disposing into the environment, including 
                the abandonment or discarding of barrels or other 
                closed receptacles.
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Purchase.--The term `purchase' has the meaning given 
        such term by section 179(d)(2).
            ``(2) Cost.--The cost of property shall not include so much 
        of the basis of the property as is determined by reference to 
        the basis of other property held at any time by the person 
        acquiring the property.
            ``(3) Coordination with other provisions.--This section 
        shall not apply with respect to any property with respect to 
        which an election under section 169 or 179 applies.''
    (b) Conforming Amendment.--The table of sections for part VI of 
subchapter B of chapter 1 of such Code is amended by adding after the 
item relating to section 179A the following new item:

                              ``Sec. 179B. Election to expense certain 
                                        environmental improvement 
                                        property.''.
    (c) Effective Date.--The amendments made by this section applies to 
property placed in service in taxable years beginning after December 
31, 1993.

                                 <all>