[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2024 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2024

         To clarify the tax treatment of intermodal containers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 6, 1993

 Mr. Matsui (for himself and Mr. Thomas of California) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
         To clarify the tax treatment of intermodal containers.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TREATMENT OF CERTAIN CARGO CONTAINERS.

    (a) General Rule.--A qualified intermodal cargo container shall be 
treated as property described in section 48(a)(2)(B)(v) of the Internal 
Revenue Code of 1986 (as in effect on the day before the date of 
enactment of the Revenue Reconciliation Act of 1990).
    (b) Qualified Intermodal Cargo Container.--
            (1) General rule.--For purposes of this section, the term 
        ``qualified intermodal cargo container'' means any intermodal 
        cargo container of a United States person which, after being 
        placed in service, at all times during the taxable year 
        either--
                    (A) is subject to a qualifying lease, or
                    (B) is being--
                            (i) held for lease,
                            (ii) moved for purposes of leasing or being 
                        available for lease, or
                            (iii) maintained or repaired for subsequent 
                        lease,
                by the taxpayer, a lessee or agent of the taxpayer or 
                any other person.
            (2) Definitions.--For purposes of this subsection--
                    (A) Qualifying lease.--The term ``qualifying 
                lease'' means--
                            (i) any lease to a container user that has 
                        one or more trade routes that contact the 
                        United States, or
                            (ii) any short-term lease to a container 
                        user.
                    (B) Container user.--The term ``container user'' 
                means--
                            (i) a person that is in the business of 
                        using intermodal cargo containers to ship or 
                        transport cargo for other persons, or
                            (ii) with respect to an intermodal cargo 
                        container, a person that uses the container to 
                        ship or transport its own cargo.
                    (C) U.S. trade routes.--A container user shall be 
                deemed to have one or more trade routes that contact 
                the United States if at any time during the taxable 
                year such person--
                            (i) owns, operates, or charters any vessel 
                        that receives or delivers any intermodal cargo 
                        container in the United States, or
                            (ii) uses any intermodal cargo container to 
                        ship cargo to or from the United States.
                    (D) Short-term lease.--The term ``short-term 
                lease'' means--
                            (i) any lease the stated term of which is 
                        not more than 50 percent of the class life 
                        (within the meaning of section 168(i)(1) of the 
                        Internal Revenue Code of 1986) of the 
                        container, and
                            (ii) any lease under a lease agreement 
                        under which the lessee is not required to use 
                        or hold the container for a specified term.
                    (E) Lease.--The term ``lease'' means lease or 
                sublease.

SEC. 2. NO INFERENCE.

    No inference shall be drawn from this Act as to the application of 
section 48(a)(2)(B)(v) of the Internal Revenue Code of 1986 (as in 
effect on the day before the date of enactment of the Revenue 
Reconciliation Act of 1990) or section 168(g)(4)(E) of the Internal 
Revenue Code of 1986 to containers that are not qualified intermodal 
cargo containers or to containers placed in service after December 31, 
1989.

SEC. 3. REVOCATION OF PRIOR ELECTION.

    (a) General Rule.--Any election made under Internal Revenue Service 
Revenue Procedure 90-10 prior to the date of enactment of this Act may 
be revoked without the consent of the Secretary of the Treasury or his 
delegate. An election revoked under this section shall be treated as 
never having been made.
    (b) Time and Manner of Revocation.--Any revocation under subsection 
(a) shall be made within 180 days after the date of enactment of this 
Act by filing with the Secretary of the Treasury or his delegate--
            (1) a statement describing the election being revoked and 
        indicating that the election is revoked, and
            (2) an amended return consistent with such revocation.

SEC. 4. EFFECTIVE DATE.

    (a) General Rule.--Section 1 shall apply to all intermodal cargo 
containers placed in service before January 1, 1990.
    (b) Revocation of Election.--Section 3 shall take effect on the 
date of the enactment of this Act.

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