110 HR 5991 IH: Tax Relief for Transportation Workers U.S. House of Representatives 2008-05-07 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 2d Session H. R. 5991 IN THE HOUSE OF REPRESENTATIVES May 7, 2008 Mr. Paul 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 tax relief for obtaining transportation worker identification credentials.

1.

Short title

This Act may be cited as the Tax Relief for Transportation Workers Act of 2008.

2.

Refundable credit for obtaining transportation worker identification credentials

(a)

In general

Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by redesignating section 36 as section 37 and by inserting after section 35 the following new section:

36.

Transportation worker identification credentials

(a)

Allowance of credit

In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the qualified expenses paid or incurred in obtaining a valid transportation worker identification credential. (b)

Limitation

(1)

In general

The amount allowed as a credit under subsection (a) for a taxable year shall not exceed the sum of the taxpayer’s regular tax liability and Social Security taxes for the taxable year. (2)

Regular tax liability and social security taxes defined

For purposes of paragraph (1), the term regular tax liability has the meaning given such term by section 26(b) and the term Social Security taxes has the meaning given such term by section 24(d)(2). (c)

Definitions

For purposes of this section— (1)

Qualified expenses

The term qualified expenses includes— (A)any fee imposed under section 70105 of title 46, United States Code, and (B)40 percent of reasonable legal expenses and any other expense reasonably incurred in obtaining a valid transportation worker identification credential. (2)

Transportation worker identification credential

The term transportation worker identification credential means the credential issued under section 70105 of title 46, United States Code. (d)

Denial of double benefit

No credit shall be allowed under subsection (a) for any expense for which a deduction is allowed under any other provision of this chapter.

. (b)

Conforming amendments

(1)Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting before the period or from section 36 of such Code. (2)The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 36 and inserting the following new items: Sec. 36. Transportation worker identification credentials. Sec. 37. Overpayments of tax. . (c)

Effective Date

The amendments made by this section shall apply to expenses paid or incurred before, on, or after the date of the enactment of this Act.

3.

Deduction for obtaining transportation worker identification credentials on behalf of employees

(a)

In general

Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to itemized deductions for individuals and corporations) is amended by adding at the end the following new section:

200.

Transportation worker identification credentials obtained on behalf of employees

(a)

Allowance of credit

In the case of an employer, there shall be allowed as a deduction an amount equal to 40 percent of the aggregate qualified expenses paid or incurred in obtaining valid transportation worker identification credentials on behalf of its employees. (b)

Definitions

For purposes of this section— (1)

Qualified expenses

The term qualified expenses includes— (A)any fee imposed under section 70105 of title 46, United States Code, and (B)reasonable legal expenses and any other expenses reasonably incurred in obtaining a valid transportation worker identification credential. (2)

Transportation worker identification credential

The term transportation worker identification credential means the credential issued under section 70105 of title 46, United States Code. (3)

Employee

The term employee has the same meaning as when used within the meaning of section 401(c)(1). (c)

Election to not take deduction

No deduction shall be allowed under subsection (a) for any expense if the taxpayer elects not to have this section apply to such expense.

. (b)

Clerical amendment

The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by inserting at the end the following new item: Sec. 200. Transportation worker identification credentials obtained on behalf of employees. . (c)

Effective date

The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.