To amend the Internal Revenue Code of 1986 to provide tax incentives to encourage manufacturers of computer, cell phone, and television equipment to operate an environmentally sound recycling program for use by consumers who want to discard the equipment.

January 25, 2005

Mr. CUNNINGHAM (for himself, Mr. CANTOR, and Mr. ISSA) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to provide tax incentives to encourage manufacturers of computer, cell phone, and television equipment to operate an environmentally sound recycling program for use by consumers who want to discard the equipment.

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 `Tax Incentives to Encourage Recycling Act of 2005' or the `TIER Act of 2005'.

SEC. 2. CREDIT FOR POST-CONSUMER RECYCLING OF COMPUTER, CELL PHONE, AND TELEVISION EQUIPMENT BY MANUFACTURERS OF THE EQUIPMENT.

(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. 45J. POST-CONSUMER RECYCLING OF COMPUTER, CELL PHONE, AND TELEVISION EQUIPMENT BY MANUFACTURERS OF THE EQUIPMENT.

`(a) General Rule- For purposes of section 38, in the case of a manufacturer of computer equipment, wireless handheld telephone units, or televisions, the recycling equipment credit determined under this section for the taxable year is the amount determined under subsection (b) for each item of such equipment--

`(1) which was manufactured by such manufacturer, and

`(2) which is disposed of by such manufacturer pursuant to a qualified recycling program.

`(b) Definitions- For purposes of this section--

`(1) COMPUTER- The term `computer' means an electronic, magnetic, optical, electrochemical, or other high speed data processing device performing logical, arithmetic, or storage functions, and may include both a central processing unit and a monitor, but such term does not include an automated typewriter or typesetter, a portable hand held calculator, or other similar device.

`(2) CENTRAL PROCESSING UNIT- The term `central processing unit' includes a case and all of its contents, such as the primary printed circuit board and its components, additional printed circuit boards, one or more disc drives, a transformer, interior wire, and a power cord.

`(3) MONITOR- The term `monitor' means a separate visual display component of a computer, whether sold separately or together with a central processing unit, and includes a cathode ray tube or liquid crystal display, its case, interior wires and circuitry, cable to the central processing unit, and power cord.

`(4) WIRELESS HANDHELD TELEPHONE UNIT- The term `wireless handheld telephone unit' includes the charging device for such unit, but such term does not include a cordless telephone designed for use in close proximity of a base unit.

`(5) QUALIFIED RECYCLING PROGRAM- The term `qualified recycling program' means any program under which all parts of the computer or television (including any hazardous waste, as defined in section 1004(5) of the Solid Waste Disposal Act (42 U.S.C. 6903)) are disposed of in an environmentally sound and responsible manner.

`(c) Amount of Credit- The amount of credit shall be determined as follows:

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`Type of item:                                 Amount of credit: 

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Central processing unit                                       $4 

Monitor                                                       $4 

Printer                                                       $4 

Mouse and Keyboard (both)                                     $1 

Television                                                    $4 

Wireless handheld telephone and charger (both)             $1.'. 

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(b) Conforming Amendment- Section 38(b) of such Code (relating to general business credit) is amended by striking `plus' at the end of paragraph (18), by striking the period at the end of paragraph (19) and inserting `, plus', and by adding at the end the following new paragraph:

`(20) in the case of a manufacturer of computer equipment or televisions, the recycling equipment credit determined under section 45G(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 inserting after the item relating to section 45I the following new item:

`Sec. 45J. Post-consumer recycling of computer, cell phone, and television equipment by manufacturers of the equipment.'.

(d) Effective Date- The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

END