A bill to amend the Internal Revenue Code of 1954 to provide income tax incentives to improve the economics of recycling wastepaper.

Amends the Internal Revenue Code to provide a nonrefundable $10 income tax credit for each ton of used waste paper which is recovered and recycled in the United States by the taxpayer. Limits the credit taken for any year to the sum of the first $25,000 in current tax liability for the year plus 50 percent of the current liability exceeding $25,000, with a three year carryback, seven year carryover procedure for taking any additional credit allowable for the current year.