S.Amdt. 5345

SA 5345. Mr. LEE submitted an amendment intended to be proposed to
amendment SA 5194 proposed by Mr. Schumer to the bill H.R. 5376, to
provide for reconciliation pursuant to title II of S. Con. Res. 14;
which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. ___. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED CARGO
HANDLING PROPERTY.

(a) In General.--Section 168 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new
subsection:
``(n) Special Allowance for Qualified Cargo Handling
Property.--
``(1) In general.--In the case of any qualified cargo
handling property--
``(A) the depreciation deduction provided by section 167(a)
for the taxable year in which such property is placed in
service shall include an allowance equal to 100 percent of
the adjusted basis of such property, and
``(B) the adjusted basis of such property shall be reduced
by the amount of such deduction before computing the amount
otherwise allowable as a depreciation deduction under this
chapter for such taxable year and any subsequent taxable
year.
``(2) Qualified cargo handling property.--For purposes of
this subsection--
``(A) In general.--The term `qualified cargo handling
property' means any property--
``(i) which is tangible property,
``(ii) with respect to which depreciation (or amortization
in lieu of depreciation) is allowable,
``(iii) which is--

``(I) constructed, reconstructed, or erected by the
taxpayer, or
``(II) acquired by the taxpayer if the original use of such
property commences with the taxpayer,

``(iv) which is--

``(I) used for purposes of cargo handling, and
``(II) remotely operated or remotely monitored (with or
without the exercise of human intervention or control), and

[[Page S4323]]

``(v) the construction of which begins before January 1,
2028.
``(B) Buildings and structural components.--
``(i) In general.--The term `qualified cargo handling
property' includes any building or its structural components
which otherwise satisfy the requirements under subparagraph
(A).
``(ii) Exception.--Subclause (I) shall not apply with
respect to a building or portion of a building used for
offices, administrative services, or other functions
unrelated to cargo handling.
``(3) Exceptions.--
``(A) Alternative depreciation property.--Such term shall
not include any property described in subsection (k)(2)(D).
``(B) Tax-exempt bond-financed property.--Such term shall
not include any property any portion of which is financed
with the proceeds of any obligation the interest on which is
exempt from tax under section 103.
``(C) Election out.--If a taxpayer makes an election under
this subparagraph with respect to any class of property for
any taxable year, this subsection shall not apply to all
property in such class placed in service during such taxable
year.
``(4) Special rules.--For purposes of this subsection,
rules similar to the rules of subsection (k)(2)(E) shall
apply.
``(5) Allowance against alternative minimum tax.--For
purposes of this subsection, rules similar to the rules of
subsection (k)(2)(G) shall apply.
``(6) Recapture.--For purposes of this subsection, rules
similar to the rules under section 179(d)(10) shall apply
with respect to any qualified cargo handling property which
ceases to be qualified cargo handling property.''.
(b) Conforming Amendment.--Section 168(k)(2) of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new subparagraph:
``(I) Coordination with qualified cargo handling
property.--The term `qualified property' shall not include
any property to which subsection (n) applies.''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.
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