[Congressional Record Volume 142, Number 10 (Thursday, January 25, 1996)]
[Senate]
[Page S382]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GREGG:
  S. 1527. A bill to amend the Internal Revenue Code of 1986 to treat 
recycling facilities as solid waste disposal facilities under the tax-
exempt bond rules, and for other purposes; to the Committee on Finance.


        THE ENVIRNONMENTAL INFRASTRUCTURE FINANCING ACT OF 1996

 Mr. GREGG. Mr. President, I introduce the Environmental 
Infrastructure Financing Act of 1996. The bill will amend the Internal 
Revenue Code of 1986 to allow recycling facilities to be eligible for 
tax-exempt bond financing.
  A continuing problem in the development of recycling efforts is the 
need for markets for the materials that are being collected. Processes 
exist for remanufacturing the recycled materials into new products, but 
they frequently require extensive capital investment.
  An approach that is often attempted is the use of the Federal tax-
exempt bond program, which does have a subcategory for solid waste 
projects. Solid waste recycling facilities should constitute a 
legitimate application of these funds; however, certain sections of the 
tax code define solid waste as being ``material without value.'' With 
recycled materials now being traded as commodities they do, in fact, 
have value, making the facilities which might process them ineligible 
for tax-exempt financing. This definitional problem impedes the 
construction of recycling facilities and hurts the development of 
recycling materials markets.
  My bill will correct this problem in the tax code and allow recycling 
facilities to obtain tax-exempt financing. The Environmental 
Infrastructure Financing Act of 1996 will foster the further 
development of the recycling industry and promote increased recycling 
on the State and local level.
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