I 111th CONGRESS 2d Session H. R. 5952 IN THE HOUSE OF REPRESENTATIVES July 29, 2010 Mr. Davis of Illinois 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 a credit for installation of composite, recyclable power line poles.

1.

Advanced manufacturing credit for property which produces composite, recyclable power line poles

(a)

In general

Clause (i) of section 48C(c)(1)(A) of the Internal Revenue Code of 1986 is amended by striking or at the end of subclause (VI), by redesignating subclause (VII) as subclause (VIII), and by inserting after subclause (VI) the following new subclause: (VII)utility poles or supports made from composite materials which are comprised of at least 15 percent recycled materials and are fully recyclable, . (b)

Effective date

The amendments made by this section shall apply to periods after the date of the enactment of this Act, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).

2.

Business credit for composite, recyclable power line poles

(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:

45R.

Electricity transmission composite pole property

(a)

In general

For purposes of section 38, the amount of the electricity transmission composite pole property credit determined under this section for any taxable year is an amount equal to 30 percent of the basis of the qualified composite poles placed in service during the taxable year. (b)

Qualified composite pole

For purposes of this section— (1)

In general

The term qualified composite pole means any pole— (A)which is placed in service after December 31, 2010, and before January 1, 2016, (B)which is used to support one or more wires for use in connection with the transmission or distribution of electricity, (C)which is comprised of not more than 85 percent virgin materials, and (D)not less than 90 percent of which can be recycled (within the meaning of section 168(m)(3)(C)) at the end of its useful life. (2)

Exceptions

Such term shall not include any property that is conductive or that contains arsenic, arsenicals, creosote, pentachlorophenol, copper napthenate. (c)

Denial of double benefit

For purposes of this subtitle, if a credit is determined under subsection (a) with respect to any property, the basis of such property shall be reduced by the amount of the credit so determined.

. (b)

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. 45R. Electricity transmission composite pole property. . (c)

Credit made part of general business credit

Subsection (b) of section 38 of such Code 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 th end the following new paragraph: (36)the electricity transmission composite pole property credit determined under section 45R(a). . (d)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.