article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Environmental Protection Encouragement Act of 1993''. SEC. 2. ELECTION TO EXPENSE CERTAIN ENVIRONMENTAL PROPERTY. (a) In General.--Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding after section 179A the following new section: ``SEC. 179. ELECTION TO EXPENSE CERTAIN ENVIRONMENTAL IMPROVEMENT PROPERTY. ``(a) Treatment as Expenses.--A taxpayer may elect to treat the cost of any environmental improvement property as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the environmental improvement property is placed in service. ``(b) Environmental Improvement Property.--For purposes of this subsection-- ``(1) In general.--The term `environmental improvement property' means tangible property which is acquired by purchase for use in the active conduct of a trade or business and which is-- ``(A) of a character subject to the allowance for depreciation provided in section 167, ``(B) used for one or more of the following purposes-- ``(i) source reduction, ``(ii) solid waste minimization, ``(iii) waste conversion or recycling, ``(iv) reduction of environmental hazards, ``(v) compliance with environmental permits, rules, and similar requirements, ``(vi) prevention, containment, or control of unplanned releases, or ``(vii) the manufacture, distribution, and sale of alternate fuels and blending stocks or fuel additives for reformulated fuels, and ``(C) located and used exclusively in the United States during the taxable year. If only a portion of property described in subparagraphs (A) and (C) is described in subparagraph (B), such portion shall be treated as environmental improvement property. For purposes of this paragraph, the term `United States' has the meaning given such term by paragraph (1) of section 638 (relating to continental shelf areas). ``(2) Other definitions.--For purposes of this subsection-- ``(A) Source reduction.--The term `source reduction' means reduction of the amount of regulated substances or other pollutants from fixed or mobile sources released into the environment if such reduction reduces hazards to public health or environment. ``(B) Solid waste minimization.--The term `solid waste minimization' means the reduction in the generation of, or the recovery of commercially usable products from, residual materials which are classified as, or which if disposed would be classified as, solid wastes (within the meaning of the Resource Conservation and Recovery Act). ``(C) Waste conversion or recycling.--The term `waste conversion or recycling' means the processing or conversion of liquid, solid, or gaseous wastes into fuel, energy, or other commercially usable products, and the production of such products if production occurs at the same facility as the conversion. ``(D) Abatement of environmental hazards.--The term `abatement of environmental hazards' includes the abatement, reduction, monitoring, or stabilization of potential human exposure to toxic chemicals, hazardous or extremely hazardous substances, or harmful radiation. ``(E) Unplanned releases.--The term `unplanned releases' means any release of regulated substances (except federally permitted releases), including indoor releases. ``(F) Regulated substance.--The term `regulated substance' includes any substance the release or emission of which is prohibited, limited, or regulated by Federal or State law or by Federal regulations (as determined without regard to whether a particular release would have been prohibited or limited). ``(G) Release.--The term `release' means any spilling, leaking, pouring, discharging, escaping, dumping, or disposing into the environment, including the abandonment or discarding of barrels or other closed receptacles. ``(c) Definitions and Special Rules.--For purposes of this section-- ``(1) Purchase.--The term `purchase' has the meaning given such term by section 179(d)(2). ``(2) Cost.--The cost of property shall not include so much of the basis of the property as is determined by reference to the basis of other property held at any time by the person acquiring the property. ``(3) Coordination with other provisions.--This section shall not apply with respect to any property with respect to which an election under section 169 or 179 applies.'' (b) Conforming Amendment.--The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by adding after the item relating to section 179A the following new item: ``Sec. 179B. Election to expense certain environmental improvement property.''. (c) Effective Date.--The amendments made by this section applies to property placed in service in taxable years beginning after December 31, 1993.
summary: Environmental Protection Encouragement Act of 1993 - Amends the Internal Revenue Code to allow the expensing of the cost of environmental improvement property.