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

Amends the Internal Revenue Code to allow an income tax credit of $10 for each ton of waste paper which is recycled by the taxpayer. Allows a 100 percent credit up to $25,000 and a 50 percent credit for expenses in excess of $25,000. Permits a carryback of three years and a carryover of seven years of any amount of the tax credit which exceeds applicable limits in the year in which it is claimed.