Amends the Internal Revenue Code to allow an investment tax credit for five percent of the cost of a qualified truck. Defines "qualified truck" as a motor vehicle: (1) first placed in service on or after January 1, 2007, and before January 1, 2008; (2) powered by diesel fuel; (3) having a gross vehicle weight of more than 26,000 pounds; and (4) which complies with certain Environmental Protection Agency (EPA) regulations for diesel emissions. Allows such credit to reduce regular or alternative minimum tax liability.
Permits a taxpayer election to expense the cost of qualified trucks placed in service in 2007.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3301 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 3301
To amend the Internal Revenue Code of 1986 to allow an investment tax
credit for the purchase of trucks with new diesel engine technologies,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 14, 2005
Mr. Hayworth 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 an investment tax
credit for the purchase of trucks with new diesel engine technologies,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. INVESTMENT CREDIT FOR TRUCKS WITH NEW DIESEL TECHNOLOGY.
(a) In General.--
(1) Allowance of credit.--Subpart E of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by inserting after section 48 the following new
section:
``SEC. 48A. NEW DIESEL TECHNOLOGY CREDIT.
``(a) General Rule.--For purposes of section 46, the new diesel
technology credit for any taxable year is 5 percent of the cost of any
qualified truck which is placed in service on or after January 1, 2007,
and before January 1, 2008.
``(b) Qualified Truck.--For purposes of this section, the term
`qualified truck' means any motor vehicle (as defined in section
30(c)(2)) which--
``(1) is first placed in service on or after January 1,
2007,
``(2) is propelled by diesel fuel,
``(3) has a gross vehicle weight rating of more than 26,000
pounds, and
``(4) complies with the regulations of the Environmental
Protection Agency with respect to diesel emissions for model
year 2007 and later.''.
(2) Credit treated as part of investment credit.--Section
46 of the Internal Revenue Code of 1986 is amended by striking
``and'' at the end of paragraph (1), by striking the period at
the end of paragraph (2) and inserting ``, and'', and by adding
at the end the following new paragraph:
``(3) the new diesel technology credit.''.
(3) Conforming amendments.--
(A) Section 49(a)(1)(C) of such Code is amended by
striking ``and'' at the end of clause (ii), by striking
the period at the end of clause (iii) and inserting ``,
and'', and by adding at the end the following new
clause:
``(iv) the basis of any qualified truck.''.
(B) The table of sections for subpart E of part IV
of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 48 the
following new item:
``Sec. 48A. New diesel technology credit.''.
(b) Credit Allowed Against AMT.--
(1) In general.--Subsection (c) of section 38 of the
Internal Revenue Code of 1986 is amended by redesignating
paragraph (5) as paragraph (6) and by inserting after paragraph
(4) the following new paragraph:
``(5) Special rules for new diesel technology credit.--
``(A) In general.--In the case of the new diesel
technology credit--
``(i) this section and section 39 shall be
applied separately with respect to such credit,
and
``(ii) in applying paragraph (1) to such
credit--
``(I) the tentative minimum tax
shall be treated as being zero, and
``(II) the limitation under
paragraph (1) (as modified by subclause
(I)) shall be reduced by the credit
allowed under subsection (a) for the
taxable year (other than the new diesel
technology credit).
``(B) New diesel technology credit.--For purposes
of this subsection, the term `new diesel technology
credit' means the portion of the investment credit
under section 46 determined under section 48A.''.
(2) Conforming amendments.--Paragraphs (2)(A)(ii)(II),
(3)(A)(ii)(II), and (4)(A)(ii)(II) of section 38(c) of such
Code are each amended by inserting ``or the new diesel
technology credit'' after ``the specified credits''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service on or after January 1, 2007, in
taxable years ending after such date, under rules similar to the rules
of section 48(m) of the Internal Revenue Code of 1986 (as in effect on
the day before the date of the enactment of the Revenue Reconciliation
Act of 1990).
SEC. 2. ELECTION TO EXPENSE QUALIFIED TRUCKS.
(a) In General.--Part VI of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section
179B the following new section:
``SEC. 179C. ELECTION TO EXPENSE NEW DIESEL TECHNOLOGY TRUCKS.
``(a) Treatment as Expenses.--A taxpayer may elect to treat the
cost of any qualified truck (as defined in section 48A) as an expense
which is not chargeable to a capital account. Any cost so treated shall
be allowed as a deduction for the taxable year in which the qualified
truck is placed in service.
``(b) Election.--
``(1) In general.--An election under this section for any
taxable year shall be made on the taxpayer's return of the tax
imposed by this chapter for the taxable year. Such election
shall be made in such manner as the Secretary may by
regulations prescribe.
``(2) Election irrevocable.--Any election made under this
section may not be revoked except with the consent of the
Secretary.
``(c) Termination.--This section shall not apply to property placed
in service after December 31, 2007.''.
(b) Conforming Amendment.--The table of sections for part VI of
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is
amended by inserting after the item relating to section 179B the
following new item:
``Sec. 179C. Election to expense new diesel technology trucks.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service on or after January 1, 2007.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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