To amend the Internal Revenue Code of 1986 to allow a credit for rural commuters.

SA 635. Mr. BYRD submitted an amendment intended to be proposed by
him to the bill H.R. 3, to authorize funds for Federal-aid highways,
highway safety programs, and transit programs, and for other purposes;
which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. TAX CREDIT FOR RURAL COMMUTERS.

(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
inserting after section 25B the following new section:

``SEC. 25C. RURAL COMMUTER CREDIT.

``(a) Allowance of Credit.--In the case of an eligible
commuter, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal
to $500.
``(b) Eligible Commuter.--For purposes of this section:
``(1) In general.--The term `eligible commuter' means an
individual who, during the taxable year--
``(A) resides in an eligible State,
``(B) drives an average of more than 250 miles per week for
purposes of commuting to and from any location related to the
employment of such individual, and
``(C) has an adjusted gross income of less than--
``(i) in the case of a joint return, $100,000,
``(ii) in the case of a head of household return, $75,000,
and
``(iii) in any other case, $50,000.
``(2) Eligible state.--
``(A) In general.--The term `eligible State' means any
State with respect to which--
``(i) the percentage of the population residing in urban
areas is less than the national average,
``(ii) the disposable personal income per capita is less
than 114 percent of the national average, and
``(iii) the use of public transportation by the population
for the purpose of commuting to and from work is less than
the national average.
``(B) Determination of eligible states.--The Secretary
shall determine which States are eligible States under
subparagraph (A) based on the most recent data available from
the Bureau of the Census.
``(3) State.--The term `State' means the 50 States of the
United States.
``(c) Termination.--This section shall not apply to any
taxpayer for any taxable year beginning after December 31,
2005.''.

[[Page S4971]]

(b) Conforming Amendment.--The table of section for subpart
A of part IV of the Internal Revenue Code of 1986 is amended
by inserting after the item relating to section 25B the
following new item:

``Sec. 25C. Rural commuter credit.''.

(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2004.
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