S. 836 – Transportation Access for All Americans Act

112th CONGRESS

1st Session

S. 836

IN THE SENATE OF THE UNITED STATES

April 14, 2011

Mr. Bingaman (for himself and Mr. Grassley) 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 special depreciation and amortization rules for highway and related property subject to long-term leases, and for other purposes.

Short title

This Act may be cited as the Transportation Access for All Americans Act.

Depreciation and amortization rules for highway and related property subject to long-term leases

(a)

Accelerated cost recovery

(1)

In general

Section 168(g)(1) of the Internal Revenue Code of 1986 is amended by striking and at the end of subparagraph (D), by redesignating subparagraph (E) as subparagraph (F), and by inserting after subparagraph (D) the following new subparagraph:

(E)

any applicable leased highway property,

(2)

Recovery period

The table contained in subparagraph (C) of section 168(g)(2) of such Code is amended by redesignating clause (iv) as clause (v) and by inserting after clause (iii) the following new clause:

(iv) Applicable leased highway property

45 years.

(3)

Applicable leased highway property defined

(A)

In general

Section 168(g) of such Code is amended by redesignating paragraph (7) as paragraph (8) and by inserting after paragraph (6) the following new paragraph:

(7)

Applicable leased highway property

For purposes of paragraph (1)(E)—

(A)

In general

The term applicable leased highway property means property to which this section otherwise applies which—

(i)

is subject to an applicable lease, and

(ii)

is placed in service before the date of such lease.

(B)

Applicable lease

The term applicable lease means a lease or other arrangement—

(i)

which is between the taxpayer and a State or political subdivision thereof, or any agency or instrumentality of either, and

(ii)

under which the taxpayer—

(I)

leases a highway and associated improvements,

(II)

receives a right-of-way on the public lands underlying such highway and improvements, and

(III)

receives a grant of a franchise or other intangible right permitting the taxpayer to receive funds relating to the operation of such highway.

(B)

Conforming amendment

Subparagraph (F) of section 168(g)(1) (as redesignated by subsection (a)(1)) is amended by striking paragraph (7) and inserting paragraph (8).

(b)

Amortization of intangibles

Section 197(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(11)

Intangibles relating to applicable leased highway property

In the case of any section 197 intangible property which is subject to an applicable lease (as defined in section 168(g)(8)(B)), the amortization period under this section shall not be less than the term of the applicable lease. For purposes of the preceding sentence, rules similar to the rules of section 168(i)(3)(A) shall apply in determining the term of the applicable lease.

(c)

No private activity bond financing of applicable leases

Section 147(e) of the Internal Revenue Code of 1986 is amended by inserting , or to finance any applicable lease (as defined in section 168(g)(8)(B)) after premises.

(d)

Effective date

The amendments made by this section shall apply to leases entered into after the date of the enactment of this Act.

Transportation Access for All Americans Act

Legislative Activity

Bill Text