,,ii #aagth ,,congress #ast ,session ,s4 #bfde ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,august #e1 #bjba,mr4 ,whitehouse introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to establish an excise tax on plastics4 #a4 ,short title ,this ,act may be cited as the ,rewarding ,efforts to ,decrease ,unrecycled ,contaminants in ,ecosystems ,act of #bjba or the ,,reduce ,act of #bjba4 #b4 ,excise tax on plastics 7a7 ,in general ,chapter #ch of the ,internal ,revenue ,code of #aihf is amended by adding at the end thereof the following new subchapter3 ,e ,tax on plastics ,sec4 #dfia4 ,imposition of tax4 ,sec4 #dfib4 ,definitions and special rules4 #dfia4 ,imposition of tax 7a7 ,general rule ,there is hereby imposed-- 7#a7 a tax on any taxable virgin plastic resin sold by an applicable entity1 and 7#b7 a tax on any imported covered item sold or used by the importer thereof4 7b7 ,amount of tax 7#a7 ,taxable virgin plastic resin 7,a7 ,in general ,the amount of the tax imposed under subsection 7a77#a7 shall be determined in accordance with the following table3 ,for any sale during calendar year3,the tax is the following amount per pound of taxable virgin plastic resin3#bjbbaj cents#bjbcae cents#bjbdbj cents#bjbe or thereafter,adjusted amount4 7,b7 ,adjusted amount 7i7 ,in general ,for purposes of subparagraph 7,a71 the adjusted amount for any sale during any calendar year beginning after ,december #ca1 #bjbd1 shall be equal to the sum of-- 7,i7 #bj cents1 plus 7,,ii7 an amount equal to-- 7aa7 #bj cents1 multiplied by 7bb7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjbc for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7ii7 ,rounding ,if any amount determined under clause 7i7 is not a multiple of #a cent1 such amount shall be rounded to the nearest multiple of #a cent4 7#b7 ,imported covered items 7,a7 ,in general ,except as provided in subparagraph 7,b71 the amount of the tax imposed under paragraph 7#b7 of subsection 7a7 on any imported covered item shall be the amount of tax which would have been imposed by paragraph 7#a7 of such subsection with respect to the amount of any taxable virgin plastic resin contained in such item if such resin had been sold in the ,united ,states by an applicable entity on the date of the sale of such item4 7,b7 ,rate where importer does not furnish information to ,secretary ,if the importer does not furnish to the ,secretary 7at such time and in such manner as the ,secretary shall prescribe7 sufficient information to determine under subparagraph 7,a7 the amount of the tax imposed by subsection 7a77#b7 on any imported covered item1 the amount of the tax imposed on such item shall be #aj percent of the appraised value of such item as of the time such item was entered into the ,united ,states for consumption1 use1 or warehousing4 7,c7 ,authority to prescribe alternate rate ,the ,secretary may prescribe for each imported covered item a tax which1 if prescribed1 shall apply in lieu of the tax specified in subparagraph 7,b7 with respect to such item4 ,the tax prescribed by the ,secretary shall be equal to the amount of tax which would be imposed by subsection 7a7 with respect to the imported covered item if such item were produced using the predominant method of production of such item4 7c7 ,applicable entity 7#a7 ,in general ,for purposes of this section1 the term applicable entity means any manufacturer1 producer1 or importer of taxable virgin plastic resin which1 during the calendar year in which the sale of such resin occurs1 manufactures1 produces1 or imports more than #aj tons of taxable virgin plastic resin4 7#b7 ,aggregation rule ,for purposes of this subsection1 all persons treated as a single employer under subsection 7a7 or 7b7 of section #eb1 or subsection 7m7 or 7o7 of section #dad1 shall be treated as a single manufacturer1 producer1 or importer4 7d7 ,exportation ,pursuant to regulations prescribed by the ,secretary1 no tax shall be imposed under this section upon the sale of any taxable virgin plastic resin for export1 and in due course so exported4 #dfib4 ,definitions and special rules 7a7 ,definitions ,for purposes of this subchapter-- 7#a7 ,covered item 7,a7 ,in general ,the term covered item means a single-use product which contains taxable virgin plastic resin1 including packaging1 food service products1 beverage containers1 and bags4 7,b7 ,exclusion ,the term covered item shall not include-- 7i7 a medical product that the ,secretary of ,health and ,human ,services determines needs to be made of virgin plastic for public health or the health of the user1 7ii7 a container for-- 7,i7 a drug regulated under the ,federal ,food1 ,drug1 and ,cosmetic ,act1 7,,ii7 infant formula1 or 7,,iii7 a meal replacement liquid1 7iii7 a personal or feminine hygiene product that could be unsafe or unsanitary to recycle1 7iv7 a sexual health product1 or 7v7 packaging-- 7,i7 for a product described in clauses 7i7 through 7iv71 or 7,,ii7 used for the shipment of hazardous materials that is prohibited from being composed of used materials under section #agh4eji or #agh4ebb of title #di1 ,code of ,federal ,regulations 7as in effect on the date of enactment of this subchapter74 7,c7 ,other terms 7i7 ,bag ,the term bag means a container made of flexible material with an opening at the top1 used for carrying items4 7ii7 ,beverage container ,the term beverage container means a prepackaged beverage container the volume of which is not greater than #c liters4 7iii7 ,food service product ,the term food service product means an item intended to deliver a food product1 including a utensil1 straw1 drink cup1 drink lid1 food package1 food container1 plate1 bowl1 meat tray1 or food wrap4 7iv7 ,packaging ,the term packaging means a package1 container1 packing materials1 or other material used for the containment1 protection1 handling1 delivery1 and presentation of goods4 7v7 ,single-use product ,the term single-use product means a product which is-- 7,i7 routinely disposed of after a single use or after its contents have been used or unpackaged1 and typically not refilled1 and 7,,ii7 not durable1 washable1 or routinely used for its original purpose multiple times before disposal4 7#b7 ,imported covered item ,the term imported covered item means any covered item entered into the ,united ,states for consumption1 use1 or warehousing4 7#c7 ,taxable virgin plastic resin 7,a7 ,in general ,the term taxable virgin plastic resin means any resin-- 7i7 which is derived from petroleum or gas 7including ethylene1 propylene1 polyethylene1 polypropylene1 polystyrene1 and polyvinyl chloride71 and 7ii7 which is manufactured or produced in the ,united ,states or entered into the ,united ,states for consumption1 use1 or warehousing4 7,b7 ,exclusion of post-consumer recycled resin ,the term taxable virgin plastic resin shall not include any resin which has been reprocessed from recovered material so it can be used for its original purpose or for other purposes in place of resin described in clause 7i7 of subparagraph 7,a74 7#d7 ,united ,states ,the term ,united ,states has the meaning given such term by section #dfab7;a77#d74 7#e7 ,importer ,the term importer means the person entering the taxable virgin plastic resin or covered item for consumption1 use1 or warehousing4 7b7 ,fraction of a pound ,in the case of a fraction of a pound1 the tax imposed by section #dfia shall be the same fraction of the amount of such tax imposed on a whole pound4 7c7 ,use treated as sale ,if any applicable entity manufactures1 produces1 or imports any taxable virgin plastic resin and uses such resin1 then such person shall be liable for tax under section #dfia in the same manner as if such resin were sold by such entity4 7d7 ,refund or credit for certain uses ,under regulations prescribed by the ,secretary1 if-- 7#a7 a tax under section #dfia7;a77#a7 was paid with respect to any taxable virgin plastic resin1 and 7#b7 such resin was used by any person in the manufacture or production within the ,united ,states of any product which is not a covered item1 then an amount equal to the tax so paid shall be allowed as a credit or refund 7without interest7 to such person in the same manner as if it were an overpayment of tax imposed by such section4 7e7 ,disposition of revenues from ,puerto ,rico and the ,virgin ,islands ,the provisions of subsections 7a77#c7 and 7b77#c7 of section #gfeb shall not apply to any tax imposed by section #dfia4 7f7 ,regulations ,the ,secretary shall prescribe such regulations as may be necessary to carry out the provisions of this subchapter4 4 7b7 ,plastic ,waste ,reduction ,fund ,subchapter ,a of chapter #ih of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #ieab4 ,plastic ,waste ,reduction ,fund 7a7 ,establishment and funding ,there is hereby established in the ,treasury of the ,united ,states a trust fund to be referred to as the ,plastic ,waste ,reduction ,fund1 consisting of such amounts as may be appropriated or credited to such trust fund as provided for in this section and section #ifjb7;b74 7b7 ,transfers to the ,plastic ,waste ,reduction ,fund ,there are hereby appropriated to the ,plastic ,waste ,reduction ,fund amounts equivalent to the taxes received in the ,treasury under section #dfia 7minus any refunds or credits pursuant to section #dfib7;d774 7c7 ,expenditures from the ,plastic ,waste ,reduction ,fund ,amounts in the ,plastic ,waste ,reduction ,fund shall be available1 as provided by appropriation ,acts1 for making expenditures-- 7#a7 to carry out reduction and recycling activities1 including making improvements to recycling infrastructure1 7#b7 to carry out plastic waste and marine debris reduction1 detection1 monitoring1 and cleanup activities of-- 7,a7 the grant programs established under section #cjb of the ,save ,our ,seas #b4j ,act 7#cc ,u4,s4,c4 #dbhb71 7,b7 the ,marine ,debris ,program established by section #c of the ,marine ,debris ,act 7#cc ,u4,s4,c4 #aieb71 7,c7 the ,marine ,debris ,foundation established by section #aaa of the ,save ,our ,seas #b4j ,act 7#cc ,u4,s4,c4 #dbaa71 and 7,d7 other ,federal programs carrying out such activities1 and 7#c7 to address environmental justice and pollution impacts from plastic production4 4 7c7 ,clerical amendments 7#a7 ,the table of subchapters for chapter #ch of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,subchapter ,e--,tax on ,plastics 4 7#b7 ,the table of sections for subchapter ,a of chapter #ih of such ,code is amended by adding at the end the following new item3 ,sec4 #ieab4 ,plastic ,waste ,reduction ,fund4 4 7d7 ,effective date ,the amendments made by this section shall take effect on ,january #a1 #bjbb4