To amend the Internal Revenue Code of 1986 to allow individuals a credit for expenditures to remove and replace underground home heating oil storage tanks in certain areas.

Amends the Internal Revenue Code to allow a tax credit for expenditures to remove and replace underground home heating oil storage tanks in critical aquifer protection areas.

 
HR 3710 IH
101st CONGRESS
1st Session
 H. R. 3710
To amend the Internal Revenue Code of 1986 to allow individuals a credit
for expenditures to remove and replace underground home heating oil storage
tanks in certain areas.
IN THE HOUSE OF REPRESENTATIVES
November 17, 1989
Mr. MCGRATH (for himself and Mr. LENT) introduced the following bill; which
was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow individuals a credit
for expenditures to remove and replace underground home heating oil storage
tanks in certain areas.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
That (a) subpart A of part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986 (relating to nonrefundable personal credits) is amended
by inserting after section 25 the following new section:
`SEC. 25A. REMOVAL AND REPLACEMENT OF CERTAIN UNDERGROUND HOME HEATING
OIL TANKS.
  `(a) ALLOWANCE OF CREDIT- In the case of an individual, there shall be
  allowed as a credit against the tax imposed by this chapter for the taxable
  year an amount equal to 25 percent of the qualified removal and replacement
  expenditures made by the taxpayer during the taxable year.
  `(b) LIMITATION-
  `(1) IN GENERAL- In the case of any dwelling unit, the amount of the
  qualified removal and replacement expenditures taken into account under
  subsection (a) for any taxable year shall not exceed $2,000.
  `(2) PRIOR YEAR EXPENDITURES TAKEN INTO ACCOUNT- If, for any prior
  taxable year, a credit was allowed to the taxpayer by reason of qualified
  removal and replacement expenditures with respect to any dwelling unit,
  the $2,000 limitation of paragraph (1) with respect to such dwelling unit
  shall be reduced by the prior year's qualified removal and replacement
  expenditures with respect to such dwelling unit which were taken into
  account in determining the amount of such credit.
  `(c) QUALIFIED REMOVAL AND REPLACEMENT EXPENDITURES-
  `(1) IN GENERAL- For purposes of this section, the term `qualified removal
  and replacement expenditure' means any expenditure by the taxpayer--
  `(A) to remove any underground storage tank located on the premises of
  the taxpayer's principal residence and used to store oil used to heat such
  residence, or
  `(B) to replace such a storage tank after its removal,
but only if such residence is located in a critical aquifer protection area.
  `(2) CRITICAL AQUIFER PROTECTION AREA- For purposes of paragraph (1), the
  term `critical aquifer protection area' has the meaning given such term
  by section 1427(b) of the Public Health Service Act (42 U.S.C. 300h-6(b)).
  `(d) CERTAIN RULES MADE APPLICABLE- For purposes of this section, rules
  similar to the rules of subsections (c)(8), (d) (other than paragraph (5)
  thereof), and (e) of section 23 shall apply.'
  (b) The table of sections for subpart A of part IV of subchapter A of
  chapter 1 of such Code is amended by inserting after the item relating to
  section 25 the following new item:
`Sec. 25A. Removal and replacement of certain underground home heating
oil tanks.'
  (b) The amendments made by this section shall apply to expenditures made
  after the date of the enactment of this Act in taxable years ending after
  such date.