[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5695 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5695

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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 1, 2010

  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.

    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 ``Economic Credit Opportunity for 
Businesses Acting Green Act of 2010'' or the ``ECOBAG Act of 2010''.

SEC. 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 1,000 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.

SEC. 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 adding at the end the following new section:

``SEC. 45S. 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 (35), by striking the period 
at the end of paragraph (36) and inserting ``, plus'', and by adding at 
the end the following new paragraph:
            ``(37) the plastic carry-out bag recycling credit 
        determined under section 45S(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. 45S. 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.
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