[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3592 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3592

 To amend the Internal Revenue Code of 1986 to allow a tax credit for 
                   producing oil from recycled waste.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 17, 2009

  Mr. Pascrell (for himself, Mr. Reichert, Mrs. Christensen, and Ms. 
Jackson-Lee of Texas) introduced the following bill; which was referred 
to the Committee on Ways and Means, and in addition to the Committee on 
Energy and Commerce, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow a tax credit for 
                   producing oil from recycled waste.

    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 ``Plastics Recycling Act of 2009''.

SEC. 2. PRODUCTION TAX CREDIT FOR CERTAIN RECYCLING ACTIVITIES.

    (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:

``SEC. 45R. OIL PRODUCED FROM CERTAIN RECYCLING ACTIVITIES.

    ``(a) General Rule.--For purposes of section 38, the waste plastic 
recycling credit for any taxable year is an amount equal to the product 
of--
            ``(1) 60 cents, multiplied by
            ``(2) the number of gallons of qualified synthetic oil--
                    ``(A) produced by the taxpayer from qualified 
                feedstock at a qualified small conversion process 
                recycling facility during the 10-year period beginning 
                on the date the facility was originally placed in 
                service, and
                    ``(B) used or sold by the taxpayer in a trade or 
                business to an unrelated person during the taxable 
                year.
    ``(b) Exception for De Minimis Percentage of Non-Qualifying 
Feedstock.--In the case that a producer uses non-qualified feedstock to 
produce a gallon (or part thereof) of qualified synthetic oil, the 
amount of the credit determined under subsection (a) with respect to 
such gallon--
            ``(1) shall be reduced by an amount equal to the amount of 
        the credit (determined without regard to this subsection) 
        multiplied by the percentage of non-qualifying feedstock used 
        in the production of such gallon, and
            ``(2) if the percentage of non-qualifying feedstock so used 
        is greater than 15 percent, the credit determined under 
        subsection (a) with respect to such gallon shall be zero.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified synthetic oil.--The term `qualified 
        synthetic oil' means oil derived from eligible feedstocks and 
        which has a minimum market value of 90 percent of crude oil, 
        represented by the New York Mercantile Exchange front-month 
        contract quoted at the time of sale.
            ``(2) Qualified small conversion process recycling 
        facility.--The term `qualified small conversion process 
        recycling facility' means any facility which--
                    ``(A) is owned by the taxpayer,
                    ``(B) is originally placed in service after the 
                date of the enactment of this section and before 
                January 1, 2015, and
                    ``(C) has a maximum daily production capacity of 
                not more than 2,000 barrels of qualified synthetic oil.
            ``(3) Eligible feedstock.--The term `eligible feedstock' 
        means post-consumer and post-industrial waste plastics.
            ``(4) Plastic.--The term `plastic' means any material that 
        is derived from one or more of the categories of materials in 
        the resin identification system developed by the Society of the 
        Plastics Industry (SPI) in 1988.
    ``(d) Applicable Rules.--For purposes of this section, rules 
similar to the rules of paragraphs (1), (3), (4), and (5) of section 
45(e) shall apply.
    ``(e) Denial of Double Benefit.--A credit shall not be allowed 
under section 40, 40A, or 6426 with respect to any fuel for which a 
credit is allowed under this section.
    ``(f) Coordination With Department of Treasury Grants.--In the case 
of any taxpayer with respect to whom the Secretary makes a grant under 
section 3 of the Plastics Recycling Act of 2009 with respect to any 
oil--
            ``(1) Denial of credits.--No credit with respect to such 
        oil shall be determined under this section or section 40, 40A, 
        or 6426 for the taxable year in which such grant is made or any 
        subsequent taxable year.
            ``(2) Recapture of credits made before grant.--If a credit 
        was determined under this section with respect to such oil for 
        any taxable year ending before such grant is made--
                    ``(A) the tax imposed under subtitle A on the 
                taxpayer for the taxable year in which such grant is 
                made shall be increased by so much of such credit as 
                was allowed under section 38,
                    ``(B) the general business carryforwards under 
                section 39 shall be adjusted so as to recapture the 
                portion of such credit which was not so allowed, and
                    ``(C) the amount of such grant shall be determined 
                without regard to any reduction in the basis of such 
                property by reason of such credit.
            ``(3) Treatment of grants.--Any such grant shall not be 
        includible in the gross income of the taxpayer.''.
    (b) Credit Allowed as Part of General Business Credit.--Section 
38(b) of such Code (defining current year business credit) is amended 
by striking ``plus'' at the end of paragraph (34), by striking the 
period at the end of paragraph (35) and inserting ``, plus'', and by 
adding at the end the following new paragraph:
            ``(36) the waste plastic recycling credit determined under 
        section 45R(a).''.
    (c) Conforming 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. 45R. Oil produced from certain recycling activities.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to oil produced after the date of enactment of this Act.

SEC. 3. GRANTS FOR OIL PRODUCED FROM CERTAIN RECYCLING ACTIVITIES IN 
              LIEU OF TAX CREDITS.

    (a) In General.--Upon application, the Secretary of the Treasury 
(or the Secretary's delegate) shall make a grant to each person to whom 
the waste plastic recycling credit determined under section 45R of the 
Internal Revenue Code of 1986 is allowable for the taxable year in 
which the grant is made.
    (b) Grant Determination.--The grant under subsection (a) shall be 
determined in the same manner as the credit is determined under section 
45R of the Internal Revenue Code of 1986 (determined without regard to 
section 38(c) of such Code) for the taxable year in which the grant is 
made.
    (c) Exception for Certain Non-Taxpayers.--The Secretary of the 
Treasury shall not make any grant under this section to--
            (1) any Federal, State, or local government (or any 
        political subdivision, agency, or instrumentality thereof),
            (2) any organization described in section 501(c) of the 
        Internal Revenue Code of 1986 and exempt from tax under section 
        501(a) of such Code,
            (3) any entity referred to in paragraph (4) of section 
        54(j) of such Code, or
            (4) any partnership or other pass-thru entity any partner 
        (or other holder of an equity or profits interest) of which is 
        described in paragraph (1), (2) or (3).
    (d) Appropriations.--For purposes of section 1324(b) of title 31, 
United States Code, a grant under this section shall be treated as a 
credit provision described in paragraph (2) of such section.
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