[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1240 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                S. 1240

 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 SENATE OF THE UNITED STATES

                             June 14, 2005

Mr. Smith (for himself and Mrs. Lincoln) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 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.
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