Credit for nonbusiness noise abatement expenditures

(a)

In general

Paragraph (1) of section 25C(a) of the Internal Revenue Code of 1986 (relating to nonbusiness energy property) is amended by striking and at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting , and, and by adding at the end the following new paragraph:

(3)if the individual is an eligible individual, the amount of qualified noise abatement expenditures paid or incurred by the taxpayer during such taxable year.

(b)

Eligible individual; qualified noise abatement expenditures

Section 25C of such Code is amended by redesignating subsections (e) through (g) as subsections (f) through (h), respectively, and by inserting after subsection (d) the following new subsection:

(e)

Eligible individual; qualified noise abatement expenditures

For purposes of this section— (1)

Eligible individual

The term eligible individual means any individual if— (A)the principal place of abode of such individual for the taxable year is located in an area of the United States which is determined by the Secretary of Transportation, in consultation with local officials, to be impacted by noise from trains or airplanes, (B)such Secretary, in consultation with other appropriate Federal agencies, determines that such noise significantly affects such individual, including taking into account health conditions that make individuals more susceptible to noise, and (C)(i)such individual is the taxpayer, or (ii)such individual is the taxpayer’s spouse or any dependent (as defined in section 152) of the taxpayer and has the same principal place of abode as the taxpayer for the taxable year. (2)

Qualified noise abatement expenditures

The term qualified noise abatement expenditures means expenditures made by the taxpayer for noise abatement property which is— (A)installed on or in connection with the principal place of abode referred to in paragraph (1), and (B)originally placed in service by the taxpayer.

Such term includes expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property.

(3)

Noise abatement property

For purposes of paragraph (2), the term noise abatement property means property specifically and primarily designed to reduce the level of exterior noise which can be heard within the residence. (4)

Coordination with energy property

Expenditures taken into account under paragraph (3) of subsection (a) may not be taken into account under paragraph (1) or (2) thereof.

(c)

Maximum credit for noise abatement

Subsection (b) of section 25C of such Code is amended— (1)by striking

Limitation

in the heading and inserting

Limitations

, (2)by inserting after the heading:

(1)

Energy credit

(3)by moving the text of such section after the paragraph (1) heading, and (4)by adding after paragraph (1) the following new paragraph:

(2)

Noise abatement

The aggregate amount of the credits determined under paragraph (3) of subsection (a) which are allowed under this section for taxable years beginning after the date of the enactment of this paragraph and before January 1, 2012, with respect to any taxpayer shall not exceed $3,000, reduced by the credit allowed to the taxpayer under paragraphs (1) and (2) of subsection (a) for the taxable year and all prior taxable years.

(d)

Conforming amendments

(1)The heading for section 25C of such Code is amended by inserting

and noise abatement

after

energy

. (2)The item relating to such section 25C in the table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting and noise abatement after energy. (e)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.