text: 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.
target: Environmental Protection Encouragement Act of 1993 - Amends the Internal Revenue Code to allow the expensing of the cost of environmental improvement property.
feat_title: Environmental Protection Encouragement Act of 1993