I 111th CONGRESS 1st Session H. R. 3947 IN THE HOUSE OF REPRESENTATIVES October 28, 2009 Mrs. Dahlkemper (for herself, Mr. Cummings, Mr. Brady of Pennsylvania, Mr. Ryan of Ohio, Mr. Murtha, Mr. Sires, Mr. Rehberg, Mr. Connolly of Virginia, Mr. Altmire, Mr. Manzullo, and Mr. Blumenauer) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To accelerate locomotive fuel savings nationwide and provide incentives for owners of high polluting locomotives to replace such locomotives with newly built or newly remanufactured fuel efficient and less polluting locomotives.

1.

Short title

This Act may be cited as the Locomotive Fleet Investment Act of 2009.

2.

Credit for locomotive property

(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:

45R.

Locomotive property credit

(a)

General rule

For purposes of section 38, the locomotive property credit determined under this section for the taxable year is an amount equal to 30 percent of the cost of the qualified locomotive property placed in service by the taxpayer during the taxable year. (b)

Qualified Locomotive Property

For purposes of this section, the term ‘qualified locomotive property’ means a newly built or newly remanufactured diesel line-haul, passenger, or switch locomotive (whether or not owned by a railroad)— (1)which is acquired by the taxpayer after December 31, 2009, (2)the original use of which commences with the taxpayer, and (3)meets the applicable standards under title II of the Clean Air Act (42 U.S.C. 7401 et seq.) for emissions from locomotives or locomotive engines, as in effect on December 31, 2009. (c)

Special Rules

(1)

Coordination with other credits

The cost of any property taken into account in determining the credit under subsection (a) may not be taken into account in determining a credit under any other provision of this title. (2)

Basis adjustment

If a credit is allowed under this section with respect to any qualified locomotive property, the basis of such property shall be reduced by the amount of the credit so allowed. (3)

Recapture

The benefit of any credit allowable under subsection (a) shall, under regulations prescribed by the Secretary, be recaptured with respect to any qualified locomotive property that is sold or otherwise disposed of by the taxpayer during the 5-year period beginning on the date on which such property is originally placed in service. The preceding sentence shall not apply to locomotive property that is sold by and subsequently leased back to the taxpayer. (d)

Termination

This section shall not apply to any property placed in service after December 31, 2013.

. (b)

Credit Allowed as Business Credit

Section 38(b) of such Code is amended by striking plus at the end of paragraph (34), by striking the period at the end of paragraph (35) and inserting , plus, and by adding at the end the following new paragraph: (36)the locomotive property credit determined under section 45R(a). . (c)

Coordination with section 55

Section 38(c)(4)(B) of such Code is amended by redesignating clauses (vi), (vii), and (viii) as clauses (vii), (viii), and (ix), respectively, and by inserting after clause (v) the following new clause: (vi)for taxable years ending after the effective date of this clause, the credit determined under section 45R(a). . (d)

Conforming amendment

Subsection (a) of section 1016 of such Code is amended by striking and at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting , and, and by adding at the end the following new paragraph: (38)to the extent provided in section 45R(c)(2). . (e)

Clerical Amendment

The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 45Q the following new item: Sec. 45R. Locomotive property credit. . (f)

Effective Date

The amendments made by this section shall apply to property placed in service after December 31, 2009.