This report attempts to describe and quantify the value of current Federal tax policy as it relates to competition between virgin and secondary materials. Tax incentives are quantified on a per ton basis both at the raw material and selected final product stages. A qualitative review of the potential impact of removing virgin material incentives on the use of secondary materials is provided. Seven materials are included (bauxite, timber, sand, iron ore, coal, oil, natural gas) with an analysis of how their taxes impact on several product categories (glass, steel, aluminum, newsprint, paperboard, plastics and rubber). The tax benefits examined include the depletion allowance, capital gains, exploration and development expenditures, State and local taxes and foreign taxes.