Advanced mine safety equipment credit in lieu of expensing

(a)

In general

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

45R.

Advanced mine safety equipment credit

(a)

In general

For purposes of section 38, the advanced mine safety equipment credit determined under this section for the taxable year is an amount equal to 50 percent of the amount paid or incurred by the taxpayer during the taxable year for qualified advanced mine safety equipment property. (b)

Qualified advanced mine safety equipment property

For purposes of this section, the term qualified advanced mine safety equipment property means any advanced mine safety equipment property for use in any underground mine located in the United States— (1)the original use of which commences with the taxpayer, (2)which is property of a character subject to the allowance for depreciation, and (3)which is placed in service by the taxpayer after the date of the enactment of this section. (c)

Advanced mine safety equipment property

For purposes of this section, the term advanced mine safety equipment property means any of the following: (1)Emergency communication technology or device which is used to allow a miner to maintain constant communication with an individual who is not in the mine. (2)Electronic identification and location device which allows an individual who is not in the mine to track at all times the movements and location of miners working in or at the mine. (3)Emergency oxygen-generating, self-rescue device which provides oxygen for at least 90 minutes. (4)Pre-positioned supplies of oxygen which (in combination with self-rescue devices) can be used to provide each miner on a shift, in the event of an accident or other event which traps the miner in the mine or otherwise necessitates the use of such a self-rescue device, the ability to survive for at least 48 hours. (5)Comprehensive atmospheric monitoring system which monitors the levels of carbon monoxide, methane, and oxygen that are present in all areas of the mine and which can detect smoke in the case of a fire in a mine. (d)

Basis adjustment

For purposes of this subtitle, if a credit is determined under this section in connection with any expenditure for any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so determined. (e)

Reporting

No credit shall be determined under subsection (a) with respect to any taxpayer for any taxable year unless such taxpayer files with the Secretary a report containing such information with respect to the operation of the mines of the taxpayer as the Secretary shall require.

(b)

Denial of double benefit

Section 280C of such Code is amended by adding at the end the following new subsection:

(g)

Advanced mine safety equipment credit

No deduction shall be allowed for that portion of the expenses otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for the taxable year under section 45R(a).

(c)

Allowance of credit against alternative minimum tax

Subparagraph (B) of section 38(c)(4) of such Code is amended by redesignating clauses (vi) through (viii) as clauses (vii) through (ix), respectively, and by inserting after clause (v) the following new clause:

(vi)the credit determined under section 45R.

(d)

Repeal of election To expense advanced mine safety equipment

(1)Part VI of subchapter B of chapter 1 of such Code is amended— (A)by striking section 179E, and (B)by striking the item relating to such section in the table of sections of such part. (2)Section 263(a)(1) of such Code is amended by striking subparagraph (L), by striking , or at the end of subparagraph (K) and inserting a period, and by inserting or at the end of subparagraph (J). (3)Section 312(k)(3)(B) of such Code is amended by striking 179D, or 179E each place it appears in the heading and text thereof and inserting or 179D. (4)Paragraphs (2)(C) and (3)(C) of section 1245(a) of such Code are each amended by striking 179E,. (e)

Conforming amendments

(1)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:

(36)the advanced mine safety equipment credit determined under section 45R(a).

(2)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. Advanced mine safety equipment credit.

(f)

Effective date

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

Mine rescue team training credit increased, allowed against AMT, and made permanent

(a)

Increased credit amount

Subsection (a) of section 45N of the Internal Revenue Code of 1986 is amended— (1)by striking 20 percent in paragraph (1) and inserting 40 percent, and (2)by striking $10,000 in paragraph (2) and inserting $20,000. (b)

Allowance of credit against alternative minimum tax

Subparagraph (B) of section 38(c)(4) of such Code, as amended by this Act, is amended by redesignating clauses (vi) through (ix) as clauses (vii) through (x), respectively, and by inserting after clause (v) the following new clause:

(vi)the credit determined under section 45N,

(c)

Repeal of termination

Section 45N of such Code is amended by striking subsection (e). (d)

Effective date

(1)

In general

Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. (2)

Allowance of credit against alternative minimum tax

The amendments made by subsection (b) shall apply to credits determined under section 45N of the Internal Revenue Code of 1986 in taxable years beginning after the date of the enactment of this Act, and to carrybacks of such credits.