SPECIAL DEPRECIATION ALLOWANCE FOR CERTAIN REUSE AND RECYCLING PROPERTY.

SEC. 308. SPECIAL DEPRECIATION ALLOWANCE FOR CERTAIN REUSE AND RECYCLING PROPERTY.(a) In General.—Section 168 is amended by adding at the end the following new subsection:“(m) Special Allowance for Certain Reuse and Recycling Property.—“(1) In general.—In the case of any qualified reuse and recycling property—“(A) the depreciation deduction provided by section 167(a) for the taxable year in which such property is placed in service shall include an allowance equal to 50 percent of the adjusted basis of the qualified reuse and recycling property, and“(B) the adjusted basis of the qualified reuse and recycling property shall be reduced by the amount of such deduction before computing the amount otherwise allowable as a depreciation deduction under this chapter for such taxable year and any subsequent taxable year.“(2) Qualified reuse and recycling property.—For purposes of this subsection—“(A) In general.—The term ‘qualified reuse and recycling property’ means any reuse and recycling property—“(i) to which this section applies,“(ii) which has a useful life of at least 5 years,“(iii) the original use of which commences with the taxpayer after August 31, 2008, and122 STAT. 3850“(iv) which is—“(I) acquired by purchase (as defined in section 179(d)(2)) by the taxpayer after August 31, 2008, but only if no written binding contract for the acquisition was in effect before September 1, 2008, or“(II) acquired by the taxpayer pursuant to a written binding contract which was entered into after August 31, 2008.“(B) Exceptions.—“(i) Bonus depreciation property under subsection (k).—The term ‘qualified reuse and recycling property’ shall not include any property to which section 168(k) applies.“(ii) Alternative depreciation property.—The term ‘qualified reuse and recycling property’ shall not include any property to which the alternative depreciation system under subsection (g) applies, determined without regard to paragraph (7) of subsection (g) (relating to election to have system apply).“(iii) Election out.—If a taxpayer makes an election under this clause with respect to any class of property for any taxable year, this subsection shall not apply to all property in such class placed in service during such taxable year.“(C) Special rule for self-constructed property.—In the case of a taxpayer manufacturing, constructing, or producing property for the taxpayer’s own use, the requirements of clause (iv) of subparagraph (A) shall be treated as met if the taxpayer begins manufacturing, constructing, or producing the property after August 31, 2008.“(D) Deduction allowed in computing minimum tax.—For purposes of determining alternative minimum taxable income under section 55, the deduction under subsection (a) for qualified reuse and recycling property shall be determined under this section without regard to any adjustment under section 56.“(3) Definitions.—For purposes of this subsection—“(A) Reuse and recycling property.—“(i) In general.—The term ‘reuse and recycling property’ means any machinery and equipment (not including buildings or real estate), along with all appurtenances thereto, including software necessary to operate such equipment, which is used exclusively to collect, distribute, or recycle qualified reuse and recyclable materials.“(ii) Exclusion.—Such term does not include rolling stock or other equipment used to transport reuse and recyclable materials.“(B) Qualified reuse and recyclable materials.—“(i) In general.—The term ‘qualified reuse and recyclable materials’ means scrap plastic, scrap glass, scrap textiles, scrap rubber, scrap packaging, recovered fiber, scrap ferrous and nonferrous metals, or electronic scrap generated by an individual or business.“(ii) Electronic scrap.—For purposes of clause (i), the term ‘electronic scrap’ means—122 STAT. 3851“(I) any cathode ray tube, flat panel screen, or similar video display device with a screen size greater than 4 inches measured diagonally, or“(II) any central processing unit.“(C) Recycling or recycle.—The term ‘recycling’ or ‘recycle’ means that process (including sorting) by which worn or superfluous materials are manufactured or processed into specification grade commodities that are suitable for use as a replacement or substitute for virgin materials in manufacturing tangible consumer and commercial products, including packaging.”.(b) Effective Date.—The amendment made by this section shall apply to property placed in service after August 31, 2008.