[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3081 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 3081

To amend the Internal Revenue Code of 1986 to provide a credit against 
 income tax for expenditures for the maintenance of railroad tracks of 
                   Class II and Class III railroads.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 10, 2001

 Mr. Moran of Kansas 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 
 income tax for expenditures for the maintenance of railroad tracks of 
                   Class II and Class III railroads.

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

SECTION 1. CREDIT FOR MAINTENANCE OF RAILROAD TRACK.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business-related 
credits) is amended by adding at the end the following new section:

``SEC. 45G. RAILROAD TRACK MAINTENANCE CREDIT.

    ``(a) General Rule.--For purposes of section 38, the railroad track 
maintenance credit determined under this section for the taxable year 
is the amount of qualified railroad track maintenance expenditures paid 
or incurred by the taxpayer during the taxable year.
    ``(b) Limitation.--The credit allowed under subsection (a) shall 
not exceed $4,000 per mile of railroad track with respect to which the 
expenditures were paid or incurred by the taxpayer for the taxable 
year.
    ``(c) Qualified Railroad Track Maintenance Expenditures.--For 
purposes of this section, the term `qualified railroad track 
maintenance expenditures' means expenditures otherwise chargeable to 
capital account for maintaining railroad track (including roadbed, 
bridges, and related track structures) of Class II or Class III 
railroads.
    ``(d) Controlled Groups.--For purposes of subsection (b), rules 
similar to the rules of paragraph (1) of section 41(f) shall apply for 
purposes of this subsection.
    ``(e) Basis Adjustment.--For purposes of this subtitle, if a credit 
is allowed under this section with respect to any railroad track, the 
basis of such track shall be reduced by the amount of the credit so 
allowed.''.
    (b) Limitation on Carryback.--Section 39(d) of the Internal Revenue 
Code of 1986 (relating to transition rules) is amended by adding at the 
end the following new paragraph:
            ``(11) No carryback of railroad track maintenance credit 
        before effective date.--No portion of the unused business 
        credit for any taxable year which is attributable to the 
        railroad track maintenance credit determined under section 45G 
        may be carried to a taxable year ending before the date of the 
        enactment of section 45G.''.
    (c) Conforming Amendments.--
            (1) Section 38(b) of the Internal Revenue Code of 1986 
        (relating to general business credit) is amended by striking 
        ``plus'' at the end of paragraph (14), by striking the period 
        at the end of paragraph (15) and inserting ``, plus'', and by 
        adding at the end the following new paragraph:
            ``(16) the railroad track maintenance credit determined 
        under section 45G(a).''.
            (2) Subsection (a) of section 1016 of such Code is amended 
        by striking ``and'' at the end of paragraph (27), by striking 
        the period at the end of paragraph (28) and inserting ``, 
        and'', and by adding at the end the following new paragraph:
            ``(29) in the case of railroad track with respect to which 
        a credit was allowed under section 45G, to the extent provided 
        in section 45G(e).''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 45F the 
following new item:

                              ``Sec. 45G. Railroad track maintenance 
                                        credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.
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