II
109th CONGRESS
1st Session
S. 1473
IN THE SENATE OF THE UNITED STATES
July 22, 2005
Ms. Collins (for herself and Mr. Kennedy) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to provide a business credit against income for the purchase of fishing safety equipment.
Short title
This Act may be cited as the
Commercial Fishermen Safety Act of
2005
.
Credit for purchase of fishing safety equipment
In general
Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business-related credits) is amended by adding at the end the following new section:
Fishing safety equipment credit
General rule
For purposes of section 38, in the case of an eligible taxpayer, the fishing safety equipment credit determined under this section for the taxable year is 75 percent of the amount of qualified fishing safety equipment expenses paid or incurred by the taxpayer during the taxable year.
Limitation on maximum credit
The credit allowed under subsection (a) with respect to a taxpayer for the taxable year shall not exceed $1,500.
Eligible taxpayer
For purposes of this section, the term eligible taxpayer means a taxpayer engaged in a fishing business.
Definitions
For purposes of this section—
Fishing business
The term fishing business means the conduct of commercial fishing as defined in section 3 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1802).
Qualified fishing safety equipment expenses
In general
The term qualified fishing safety equipment expenses means an amount paid or incurred for fishing safety equipment for use by the taxpayer in connection with a fishing business.
Fishing safety equipment
The term fishing safety equipment means—
lifesaving equipment required to be carried by a vessel under section 4502 of title 46, United States Code, and
any maintenance of such equipment required under such section.
Special rules
In general
Rules similar to the rules of subsections (c), (d), and (e) of section 52 shall apply for purposes of this section.
Aggregation rules
All persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as one person for purposes of subsection (a).
Denial of double benefit
No deduction shall be allowed under this chapter (other than a credit under this section) for any amount taken into account in determining the credit under this section.
Basis adjustment
For purposes of this subtitle, if a credit is allowed under this section with respect to any equipment, the basis of such equipment shall be reduced by the amount of the credit so allowed.
.
Conforming amendments
Section 38(b) of the Internal Revenue Code
of 1986 (relating to general business credit) is amended by striking
plus
at the end of paragraph (18), by striking the period at the
end of paragraph (19) and inserting , plus
, and by adding at the
end the following new paragraph:
the fishing safety equipment credit determined under section 45J(a).
.
Subsection (a) of section 1016 of such Code
is amended by striking and
at the end of paragraph (30), by
striking the period at the end of paragraph (31) and inserting ,
and
, and by adding at the end the following new paragraph:
in the case of equipment with respect to which a credit was allowed under section 45J, to the extent provided in section 45J(g).
.
Clerical amendment
The table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:
Sec. 45J. Fishing safety equipment credit.
.
Effective date
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.