I 111th CONGRESS 1st Session H. R. 1097 IN THE HOUSE OF REPRESENTATIVES February 13, 2009 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 2009.

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 inserting after section 36 the following new section:

36A.

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. (e)

Credit for expenses incurred in prior years

In the case of any taxable year beginning after December 31, 2006, and before the first taxable year beginning after the date of the enactment of this section— (1)the credit under this section shall be determined separately for each such year as if this section had been effective for such year, and (2)the aggregate of the credits determined under paragraph (1) shall be added (without regard to subsection (b)) to the credit otherwise allowed under this section for such first taxable year.

. (b)

Conforming amendments

(1)Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting 36A, after 36,. (2)The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 36 the following new item: Sec. 36A. Transportation worker identification credentials. . (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.