[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 563 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 563

     To amend the Internal Revenue Code of 1986 to treat recycling 
 facilities as exempt facilities under the tax-exempt bond rules, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 15, 1995

   Mr. Gregg 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 treat recycling 
 facilities as exempt facilities under the tax-exempt bond rules, and 
                          for other 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 Infrastructure 
Financing Act of 1995''.

SEC. 2. RECYCLING FACILITIES TREATED AS EXEMPT FACILITIES.

    (a) Treatment as Exempt Facility Bond.--Subsection (a) of section 
142 of the Internal Revenue Code of 1986 (defining exempt facility 
bond) is amended by striking ``or'' at the end of paragraph (11), by 
striking the period at the end of paragraph (12) and inserting ``, 
or'', and by adding at the end the following new paragraph:
            ``(13) qualified recycling facilities.''
    (b) Qualified Recycling Facilities Defined.--Section 142 of the 
Internal Revenue Code of 1986 (defining exempt facility bond) is 
amended by adding at the end the following new subsection:
    ``(k) Qualified Recycling Facilities.--
            ``(1) In general.--For purposes of subsection (a)(13), the 
        term `qualified recycling facilities' means any facility used 
        exclusively--
                    ``(A) to sort and prepare municipal, industrial, 
                and commercial refuse for recycling, or
                    ``(B) in the recycling of qualified refuse.
            ``(2) Qualified refuse.--For purposes of this subsection, 
        the term `qualified refuse' means--
                    ``(A) yard waste,
                    ``(B) food waste,
                    ``(C) waste paper and paperboard,
                    ``(D) plastic scrap,
                    ``(E) rubber scrap,
                    ``(F) ferrous and nonferrous scrap metal,
                    ``(G) waste glass,
                    ``(H) construction and demolition waste, and
                    ``(I) biosolids (sewage sludge).
            ``(3) Recycling.--For purposes of this subsection, the term 
        `recycling' includes either--
                    ``(A) processing (including composting) qualified 
                refuse to a point at which such refuse has commercial 
                value; or
                    ``(B) manufacturing products from qualified refuse 
                when such refuse constitutes at least 40 percent, by 
                weight or volume, of the total materials introduced 
                into the manufacturing process.
            ``(4) Special rule.--Refuse shall not fail to be treated as 
        waste merely because such refuse has a market value at the 
        place such refuse is located only by reason of the value of 
        such refuse for recycling.''
    (c) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.

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