[Congressional Record Volume 144, Number 71 (Thursday, June 4, 1998)]
[Extensions of Remarks]
[Page E1029]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      INTRODUCTION OF LEGISLATION

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                          HON. PHILIP M. CRANE

                              of illinois

                    in the house of representatives

                         Thursday, June 4, 1998

  Mr. CRANE. Mr. Speaker, I rise to commend to the attention of my 
colleagues legislation that I am introducing today with my fellow Ways 
and Means Committee member, Robert Matsui.
  Quite simply, this bill will clarify the length of time which 
petroleum storage facilities are depreciated for tax purposes. Since 
1981 the petroleum terminal industry has depreciated this property over 
a 5 year time period. Recently, however, the Internal Revenue Service 
(IRS) has challenged this practice. Instead, the IRS has suggested that 
the correct depreciable life for petroleum storage facilities is 15 
years. My bill will end this debate and state that petroleum storage 
tanks may be depreciated over five years.
  Congress has changed the depreciation rules for numerous properties 
since 1981, but we have not acted to specifically change the 
depreciation rules for petroleum storage tanks. The petroleum storage 
industry has complied with the tax code in good faith, now only to be 
told the IRS wants to change the rules. The IRS is even instituting 
this change in selective cases through examinations. While we in 
Congress do give the IRS the authority to enforce the tax laws, only 
Congress, and specifically the House Ways and Means Committee, has the 
Constitutional authority to originate new tax laws.
  Enactment of this legislation will resolve this issue, and both the 
taxpayers in the petroleum storage industry as well as the IRS will be 
saved the millions of dollars which would otherwise be spent disputing 
the correct depreciation time. I urge my colleagues to join us in 
cosponsoring this important bill.

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