[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 2081 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 2081

  To amend the Internal Revenue Code of 1986 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.


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                   IN THE SENATE OF THE UNITED STATES

                            October 29, 2009

Mr. Specter (for himself and Mr. Casey) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

SEC. 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:

``SEC. 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 any 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) 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.
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