To amend the Internal Revenue Code of 1986 to allow partnerships invested in infrastructure property to be treated as publicly traded partnerships, to reduce the depreciation recovery periods for such property, and for other purposes.

Amends the Internal Revenue Code to: (1) treat income and gains from the use, sale, or exchange of infrastructure property as qualifying income for purposes of the tax treatment of publicly-traded partnerships; (2) exempt publicly-traded partnerships from the limitation on the tax deduction for income attributable to oil-related qualified production activities; (3) allow accelerated depreciation of infrastructure property (i.e., classify such property as five-year property); and (4) treat exchanges of infrastructure property as like-kind exchanges (thus exempting gain from such exchanges from tax).

Defines "infrastructure property" as property which is part of: (1) roads and related improvements; (2) train tracks and related improvements; (3) airports; (4) docks and wharves; (5) facilities for sewage, solid waste disposal, the furnishing of water, the transmission and distribution of natural gas, or the generation, transmission, and distribution of electricity; or (6) communications facilities.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4001 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 4001

   To amend the Internal Revenue Code of 1986 to allow partnerships 
 invested in infrastructure property to be treated as publicly traded 
  partnerships, to reduce the depreciation recovery periods for such 
                   property, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 9, 2012

 Mr. Campbell 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 partnerships 
 invested in infrastructure property to be treated as publicly traded 
  partnerships, to reduce the depreciation recovery periods for such 
                   property, 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. INCENTIVES FOR INFRASTRUCTURE INVESTMENTS.

    (a) Infrastructure Income To Be Qualifying Income for Purposes of 
Determining Publicly Traded Partnership Status.--
            (1) In general.--Paragraph (1) of section 7704(d) of the 
        Internal Revenue Code of 1986 (defining qualifying income) is 
        amended by redesignating subparagraphs (F) and (G) as 
        subparagraphs (G) and (H), respectively, and by inserting after 
        subparagraph (E) the following new subparagraph:
                    ``(F) income and gains from the use, sale, or 
                exchange of infrastructure property,''.
            (2) Infrastructure property.--Subsection (d) of section 
        7704 of such Code is amended by adding at the end the following 
        new paragraph:
            ``(6) Infrastructure property.--The term `infrastructure 
        property' means property which is part of any of the following:
                    ``(A) Roads and related improvements.
                    ``(B) Train tracks and related improvements.
                    ``(C) Airports.
                    ``(D) Docks and wharves.
                    ``(E) Facilities for the furnishing of water.
                    ``(F) Sewage facilities.
                    ``(G) Solid waste disposal facilities.
                    ``(H) Facilities for the generation, transmission, 
                and distribution of electricity, including property 
                described in clause (iii) or (iv) of section 
                168(e)(3)(D).
                    ``(I) Facilities for the transmission and 
                distribution of natural gas.
                    ``(J) Communications facilities.
        For purposes of subparagraphs (A) and (B), related improvements 
        include bridges, tunnels, and traffic control equipment.''.
    (b) Expansion of Deduction for Domestic Production Activities in 
the Case of Publicly Traded Partnerships.--
            (1) Reduction for oil related qualified production 
        activities income not to apply.--Paragraph (9) of section 
        199(d) of such Code is amended by adding at the end the 
        following new subparagraph:
                    ``(D) Exception for income from publicly traded 
                partnerships.--Subparagraph (A) shall not apply to 
                income derived from any publicly traded partnership (as 
                defined in section 7704(b)).''.
            (2) Distribution and transmission activities of a publicly 
        traded partnership to be eligible.--Subparagraph (B) of section 
        199(c)(4) of such Code is amended by adding at the end the 
        following new flush sentence:
                ``Clause (ii) shall not apply to the activities of a 
                publicly traded partnership (as defined in section 
                7704(b)).''.
    (c) Infrastructure Property Treated as 5-Year Property.--
            (1) In general.--Subparagraph (B) of section 168(e)(3) of 
        such Code is amended by striking ``and'' at the end of clause 
        (vi), by striking the period at the end of clause (vii) and 
        inserting ``, and'', and by inserting after clause (vii) the 
        following new clause:
                            ``(viii) infrastructure property (as 
                        defined in section 7704(d)(6)).''.
            (2) Conforming amendments.--
                    (A) Subparagraph (C) of section 168(e)(3) of such 
                Code is amended by striking clause (i) and by 
                redesignating the succeeding clauses accordingly.
                    (B) Subparagraph (D) of such section is amended by 
                adding ``and'' at the end of clause (i), by striking 
                ``, and'' at the end of clause (ii) and inserting a 
                period, and by striking clauses (iii) and (iv).
                    (C) Subparagraph (E) of such section is amended by 
                striking clauses (i), (ii), and (vii) and by 
                redesignating clauses (iii), (iv), (v), (vi), (viii), 
                and (ix) as clauses (i), (ii), (iii), (iv), (v), and 
                (vi), respectively.
                    (D) Subparagraph (F) of such section is hereby 
                repealed.
                    (E) Subsection (e) of section 168 of such Code is 
                amended by striking paragraphs (4) and (5) and by 
                redesignating the succeeding paragraphs accordingly.
                    (F) The table contained in section 168(g)(3)(B) of 
                such Code is amended by striking the item relating to 
                subparagraph (C)(i) and all that follows and inserting 
                the following:


 
 
------------------------------------------------------------------------
``(C)(ii)..................................................           22
(C)(iii)...................................................           14
(D)(i).....................................................           15
(D)(ii)....................................................           20
(E)(i).....................................................           20
(E)(ii)....................................................           39
(E)(iii)...................................................           39
(E)(iv)....................................................           20
(E)(v).....................................................           35
(E)(vi)....................................................        39''.
------------------------------------------------------------------------

    (d) Like-Kind Exchange Treatment for Exchanges of Infrastructure 
Property.--Section 1031 of such Code (relating to exchange of property 
held for productive use or investment) is amended by adding at the end 
the following new subsection:
    ``(j) All Infrastructure Property Treated as Like Kind.--Except as 
provided in subsection (h), each real property--
            ``(1) which is infrastructure property (as defined in 
        section 7704(d)(6)), and
            ``(2) which is held for productive use in a trade or 
        business or for investment,
shall be treated as being of a like kind to every other real property 
which is infrastructure property (as so defined) and which is so 
held.''.
    (e) Effective Dates.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), the amendments made by this section shall apply to taxable 
        years beginning after the date of the enactment of this Act.
            (2) Depreciation.--The amendments made by subsection (c) 
        shall apply to property placed in service after the date of the 
        enactment of this Act in taxable years ending after such date.
            (3) Exchanges.--The amendment made by subsection (d) shall 
        apply to transfers after the date of the enactment of this Act 
        in taxable years ending after such date.
                                 <all>