110 HR 6749 IH: ECOBAG Act of U.S. House of Representatives 2008-07-31 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.

I 110th CONGRESS 2d Session H. R. 6749 IN THE HOUSE OF REPRESENTATIVES July 31, 2008 Mrs. Lowey 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 allow retail businesses a credit against income tax for a portion of the cost of recycling plastic carry-out bags and certain other types of plastic.

1.

Short title

This Act may be cited as the Economic Credit Opportunity for Businesses Acting Green Act of 2008 or the ECOBAG Act of 2008.

2.

Findings and purpose

(a)

Findings

The Congress finds the following: (1)It is estimated that Americans use approximately 100 billion plastic bags per year. An estimated 0.6 percent of these bags will be recycled. (2)The production of plastic bags and film plastic worldwide uses over 12 million barrels of oil per year, accounting for upwards of 4 percent of the world's total oil production. (3)The Environmental Protection Agency has found that the average plastic bag will take up to 1000 years to decompose. Because these plastic bags do not biodegrade, when improperly disposed they ultimately end up breaking down into smaller pieces contaminating our soil and waterways while causing injury, illness, or death to our animal and marine life. (b)

Purpose

The purpose of this Act is to allow an income tax credit for retail businesses that participate in at-store plastic bag recycling programs.

3.

Credit for costs of collection and recycling by retail businesses of plastic carry-out bags and certain other types of plastic

(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 inserting after section 45P the following new section:

45Q.

Costs of collection and recycling by retail businesses of plastic carry-out bags and certain other types of plastic

(a)

In general

For purposes of section 38, in the case of an eligible taxpayer, the plastic carry-out bag recycling credit is an amount equal to 15 percent of the amount paid or incurred directly or indirectly by the taxpayer to implement an at-store recycling program for 1 or more types of eligible plastic. (b)

Eligible taxpayer

For purposes of this section— (1)

In general

The term eligible taxpayer means any taxpayer engaged in the trade or business of selling property at retail and who accepts for recycling 1 or more types of eligible plastic at retail business premises of the taxpayer. (2)

Exception

Such term shall not include any taxpayer engaged in the trade or business of recycling. (c)

Eligible plastic

For purposes of this section, the term eligible plastic means plastic carry-out bags, film plastic, and other types of plastic specified in regulations prescribed by the Secretary. (d)

Expenses offset by recycling income

The expenses which would (but for this subsection) be taken into account under subsection (a) shall be reduced by any income from the sale of used plastic carry-out bags to any recycler.

. (b)

Conforming amendment

Section 38(b) of such Code is amended by striking plus at the end of paragraph (32), by striking the period at the end of paragraph (33) and inserting , plus, and by adding at the end the following new paragraph: (34)in the case of an eligible taxpayer (as defined in section 45Q(b)), the plastic carry-out bag recycling credit determined under section 45Q(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 adding at the end the following new item: Sec. 45Q. Costs of collection and recycling by retail businesses of plastic carry-out bags and certain other types of plastic. . (d)

Effective date

The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act in taxable years ending after such date.