I 111th CONGRESS 2d Session H. R. 4494 IN THE HOUSE OF REPRESENTATIVES January 21, 2010 Mr. Davis of Illinois 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 allow a credit for lightweight coal freight cars.

1.

Lightweight coal freight car credit

(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.

Lightweight coal freight car credit

(a)

In general

For purposes of section 38, in the case of a taxpayer who is engaged in the trade or business of transporting coal by rail or financing freight cars for use in such a trade or business, the lightweight coal freight car credit determined under this section for any taxable year shall be an amount equal to 30 percent of the basis of each eligible lightweight coal freight car placed in service by the taxpayer during the taxable year. (b)

Eligible lightweight coal freight car

For purposes of this section— (1)

In general

The term eligible lightweight coal freight car means any freight car— (A)designed to carry coal by rail, (B)the tare weight of which does not exceed 50,000 pounds, and (C)substantially all of the manufacturing of which occurred in the United States. (2)

Substantially all

Substantially all of the manufacturing of a freight car shall be treated as having occurred in the United States if— (A)the cost of the freight car’s components produced in the United States is more than 80 percent of the cost of all components of the freight car, and (B)final assembly of the freight car occurs in the United States. (c)

Basis adjustment

For purposes of this subtitle, if a credit is allowed under this section with respect to any freight car, the basis of such car shall be reduced by the amount of the credit so allowed. (d)

Termination

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

. (b)

Credit made part of general business credit

Subsection (b) of section 38 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 lightweight coal freight car credit determined under section 45R(a). . (c)

Conforming amendments

Subsection (a) of section 1016 of such Code is amended by striking and at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting , and, and by adding at the end the following new paragraph: (37)to the extent provided in section 45R(c). . (d)

Clerical amendment

The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 45R. Lightweight coal freight car credit. . (e)

Effective date

The amendments made by this section shall apply to freight cars placed in service after the date of the enactment of this Act.