109 HR 320 IH: Tax Incentives to Encourage Recycling Act of 2005 U.S. House of Representatives 2005-01-25 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.

I 109th CONGRESS 1st Session H. R. 320 IN THE HOUSE OF REPRESENTATIVES January 25, 2005 Mr. Cunningham (for himself, Mr. Cantor, and Mr. Issa) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to provide tax incentives to encourage manufacturers of computer, cell phone, and television equipment to operate an environmentally sound recycling program for use by consumers who want to discard the equipment.

1.

Short title

This Act may be cited as the Tax Incentives to Encourage Recycling Act of 2005 or the TIER Act of 2005.

2.

Credit for post-consumer recycling of computer, cell phone, and television equipment by manufacturers of the equipment

(a)

In general

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business-related credits) is amended by adding at the end the following new section:

45J.

Post-consumer recycling of computer, cell phone, and television equipment by manufacturers of the equipment

(a)

General rule

For purposes of section 38, in the case of a manufacturer of computer equipment, wireless handheld telephone units, or televisions, the recycling equipment credit determined under this section for the taxable year is the amount determined under subsection (b) for each item of such equipment— (1)which was manufactured by such manufacturer, and (2)which is disposed of by such manufacturer pursuant to a qualified recycling program. (b)

Definitions

For purposes of this section— (1)

Computer

The term computer means an electronic, magnetic, optical, electrochemical, or other high speed data processing device performing logical, arithmetic, or storage functions, and may include both a central processing unit and a monitor, but such term does not include an automated typewriter or typesetter, a portable hand held calculator, or other similar device. (2)

Central processing unit

The term central processing unit includes a case and all of its contents, such as the primary printed circuit board and its components, additional printed circuit boards, one or more disc drives, a transformer, interior wire, and a power cord. (3)

Monitor

The term monitor means a separate visual display component of a computer, whether sold separately or together with a central processing unit, and includes a cathode ray tube or liquid crystal display, its case, interior wires and circuitry, cable to the central processing unit, and power cord. (4)

Wireless handheld telephone unit

The term wireless handheld telephone unit includes the charging device for such unit, but such term does not include a cordless telephone designed for use in close proximity of a base unit. (5)

Qualified recycling program

The term qualified recycling program means any program under which all parts of the computer or television (including any hazardous waste, as defined in section 1004(5) of the Solid Waste Disposal Act (42 U.S.C. 6903)) are disposed of in an environmentally sound and responsible manner. (c)

Amount of credit

The amount of credit shall be determined as follows: Type of item:Amount of credit:Central processing unit$4Monitor$4Printer$4Mouse and Keyboard (both)$1Television$4Wireless handheld telephone and charger (both)$1.

. (b)

Conforming amendment

Section 38(b) of such Code (relating to general business credit) is amended by striking plus at the end of paragraph (18), by striking the period at the end of paragraph (19) and inserting , plus, and by adding at the end the following new paragraph: (20)in the case of a manufacturer of computer equipment or televisions, the recycling equipment credit determined under section 45G(a).. (c)

Clerical amendment

The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 45I the following new item: Sec. 45J. Post-consumer recycling of computer, cell phone, and television equipment by manufacturers of the equipment . (d)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.