I
111th CONGRESS
1st Session
H. R. 3947
IN THE HOUSE OF REPRESENTATIVES
October 28, 2009
Mrs. Dahlkemper (for herself, Mr. Cummings, Mr. Brady of Pennsylvania, Mr. Ryan of Ohio, Mr. Murtha, Mr. Sires, Mr. Rehberg, Mr. Connolly of Virginia, Mr. Altmire, Mr. Manzullo, and Mr. Blumenauer) introduced the following bill; which was referred to the Committee on Ways and Means
A BILL
To accelerate locomotive fuel savings nationwide and provide incentives for owners of high polluting locomotives to replace such locomotives with newly built or newly remanufactured fuel efficient and less polluting locomotives.
Short title
This Act may be cited as the
Locomotive Fleet Investment Act of
2009
.
Credit for locomotive property
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:
Locomotive property credit
General rule
For purposes of section 38, the locomotive property credit determined under this section for the taxable year is an amount equal to 30 percent of the cost of the qualified locomotive property placed in service by the taxpayer during the taxable year.
Qualified Locomotive Property
For purposes of this section, the term ‘qualified locomotive property’ means a newly built or newly remanufactured diesel line-haul, passenger, or switch locomotive (whether or not owned by a railroad)—
which is acquired by the taxpayer after December 31, 2009,
the original use of which commences with the taxpayer, and
meets the applicable standards under title II of the Clean Air Act (42 U.S.C. 7401 et seq.) for emissions from locomotives or locomotive engines, as in effect on December 31, 2009.
Special Rules
Coordination with other credits
The cost of any property taken into account in determining the credit under subsection (a) may not be taken into account in determining a credit under any other provision of this title.
Basis adjustment
If a credit is allowed under this section with respect to any qualified locomotive property, the basis of such property shall be reduced by the amount of the credit so allowed.
Recapture
The benefit of any credit allowable under subsection (a) shall, under regulations prescribed by the Secretary, be recaptured with respect to any qualified locomotive property that is sold or otherwise disposed of by the taxpayer during the 5-year period beginning on the date on which such property is originally placed in service. The preceding sentence shall not apply to locomotive property that is sold by and subsequently leased back to the taxpayer.
Termination
This section shall not apply to any property placed in service after December 31, 2013.
.
Credit Allowed as Business Credit
Section
38(b) of such Code is amended by striking plus
at the end of
paragraph (34), by striking the period at the end of paragraph (35) and
inserting , plus
, and by adding at the end the following new
paragraph:
the locomotive property credit determined under section 45R(a).
.
Coordination with section 55
Section 38(c)(4)(B) of such Code is amended by redesignating clauses (vi), (vii), and (viii) as clauses (vii), (viii), and (ix), respectively, and by inserting after clause (v) the following new clause:
for taxable years ending after the effective date of this clause, the credit determined under section 45R(a).
.
Conforming amendment
Subsection (a) of section 1016 of such Code is amended
by striking and
at the end of paragraph (36), by striking the
period at the end of paragraph (37) and inserting , and
, and by
adding at the end the following new paragraph:
to the extent provided in section 45R(c)(2).
.
Clerical Amendment
The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 45Q the following new item:
Sec. 45R. Locomotive property credit.
.
Effective Date
The amendments made by this section shall apply to property placed in service after December 31, 2009.