Coastal Restoration Tax Credit Act of 2005 - Amends the Internal Revenue Code to allow a tax credit for expenditures related to any project approved by the Natural Resources Conservation Service to restore or protect coastal lands in the United States.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2102 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 2102
To amend the Internal Revenue Code of 1986 to provide a credit against
the income tax for expenses incurred in restoring and protecting
coastal lands.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 4, 2005
Mr. Melancon (for himself, Mr. Baker, Mr. McCrery, Mr. Jefferson, Mr.
Alexander, Mr. Jindal, and Mr. Boustany) 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 provide a credit against
the income tax for expenses incurred in restoring and protecting
coastal lands.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Coastal Restoration Tax Credit Act
of 2005''.
SEC. 2. CREDIT FOR EXPENSES INCURRED IN RESTORING AND PROTECTING
COASTAL LANDS.
(a) In General.--Subpart B 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 section:
``SEC. 30B. CREDIT FOR EXPENSES INCURRED IN RESTORING AND PROTECTING
COASTAL LANDS.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to the qualified expenditures of the taxpayer for the taxable
year.
``(b) Limitations.--
``(1) Maximum credit.--The credit allowed under subsection
(a) for a taxable year shall not exceed $2,000,000.
``(2) Limitation based on amount of tax.--The credit
allowed under subsection (a) for the taxable year shall not
exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under
subpart A and sections 27 and 30A for the taxable year.
``(c) Qualified Expenditures.--For purposes of this section--
``(1) In general.--The term `qualified expenditures' means
amounts paid or incurred by the taxpayer for an approved
project.
``(2) Approved project.--The term `approved project' means
any project approved by the Natural Resources Conservation
Service to restore or protect coastal lands located in the
United States.
``(d) Carryovers Allowed.--
``(1) In general.--If the credit amount allowable under
subsection (a) for a taxable year exceeds the amount of the
limitation under subsection (c) for such taxable year (referred
to as the `unused credit year' in this paragraph), such excess
shall be allowed as a credit carryforward for each of the
taxable years following the unused credit year or as a credit
carryback for each of the taxable years preceeding the unused
credit year.
``(2) Rules.--For purposes of paragraph (1), rules similar
to the rules of section 39 shall apply, except that--
``(A) subsection (a)(1) shall be applied--
``(i) by substituting `3 taxable years' for
`1 taxable years' in subparagraph (A) thereof,
and
``(ii) by substituting `5 taxable years'
for `20 taxable years' in subparagraph (B)
thereof, and
``(B) subsection (a)(2) shall be applied--
``(i) by substituting `8 taxable years' for
`21 taxable years' in subparagraph (A) thereof,
and
``(ii) by substituting `7 taxable years'
for `20 taxable years' in subparagraph (B).
``(e) Special Rules.--
``(1) Basis reduction.--The basis of any property for which
a credit is allowable under subsection (a) shall be reduced by
the amount of such credit (determined without regard to
subsection (b)(2)).
``(2) No double benefit.--The amount of any deduction or
credit allowable under this chapter (other than the credit
allowable under subsection (a)), shall be reduced by the amount
of credit allowed under subsection (a) (determined without
regard to subsection (b)(2)) for the taxable year.
``(3) Reduction for assistance.--The amount taken into
account under subsection (a) with respect to any project shall
be reduced by the amount of any Federal, State, or local grant
or other assistance received by the taxpayer during such
taxable year or any prior taxable year which was used to make
qualified expenditures and which was not included in the gross
income of such taxpayer.''.
(b) Basis Adjustment.--Section 1016(a) 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:
``(32) to the extent provided in section 30B(e)(1).''.
(c) Clerical Amendment.--The table of sections for subpart B of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 30A the following new
item:
``Sec. 30B. Credit for expenses incurred in restoring and protecting
coastal lands.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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