Boating Safety Tax Incentive Act

Boating Safety Tax Incentive Act - Amends the Internal Revenue Code to allow boat manufacturers a tax deduction for boating safety equipment provided to purchasers of new recreational boats and certain other small maritime vessels.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5274 Introduced in House (IH)]







109th CONGRESS
  2d Session
                                H. R. 5274

 To amend the Internal Revenue Code of 1986 to provide a deduction for 
               the provision of boating safety equipment.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 2, 2006

 Mr. Sweeney 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 deduction for 
               the provision of boating safety equipment.

    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 ``Boating Safety Tax Incentive Act.''

SEC. 2. DEDUCTION FOR BOATING SAFETY EQUIPMENT.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended at the end of the following 
new section:

``SEC. 199A. BOATING SAFETY EQUIPMENT.

    ``(a) Allowance of Deduction.--There is allowed a deduction for the 
provision without charge of qualified boating safety equipment by a 
boat manufacturer to purchasers of eligible boats.
    ``(b) Amount of Deduction.--The deduction under subsection (a) 
shall be the lesser of the fair market value of the qualified boating 
safety equipment determined by the retail price of such equipment, or 
twice of the boat manufacturer's basis or cost of such qualified 
boating safety equipment.
    ``(c) Definitions.--For the purposes of this section:
            ``(1) Qualified boating safety equipment.--The term 
        `qualified boat safety equipment' means--
                    ``(A) United States Coast Guard approved personal 
                flotation devices, except for Type IV or throwable 
                personal flotation devices; and
                    ``(B) Category I or Category II 406 MHZ emergency 
                position indicating radio beacons.
            ``(2) Eligible boats.--The term `eligible boats' means--
                    ``(A) any new recreational boats; and
                    ``(B) any `small passenger vessel' as that term is 
                described in 46 U.S.C. 2101 carrying not more than 250 
                passengers; and
                    ``(C) any `uninspected passenger vessel' as that 
                term is described in 46 U.S.C. 2101.''
    (b) Effective Date.--The amendments made by this section shall 
apply to qualified boat safety equipment provided after January 1, 
2007.
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