To amend the Internal Revenue Code of 1986 to allow a credit against income tax for taxpayers owning certain commercial power takeoff vehicles.

January 26, 2005

Mr. ENSIGN introduced the following bill; which was read twice and referred to the Committee on Finance

To amend the Internal Revenue Code of 1986 to allow a credit against income tax for taxpayers owning certain commercial power takeoff vehicles.

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 `Fuel Tax Equalization Credit for Substantial Power Takeoff Vehicles Act'.

SEC. 2. CREDIT FOR TAXPAYERS OWNING COMMERCIAL POWER TAKEOFF VEHICLES.

(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. 45J. COMMERCIAL POWER TAKEOFF VEHICLES CREDIT.

`(a) General Rule- For purposes of section 38, the amount of the commercial power takeoff vehicles credit determined under this section for the taxable year is $250 for each qualified commercial power takeoff vehicle owned by the taxpayer as of the close of the calendar year with or within which the taxable year ends.

`(b) Definitions- For purposes of this section--

`(1) QUALIFIED COMMERCIAL POWER TAKEOFF VEHICLE- The term `qualified commercial power takeoff vehicle' means any highway vehicle described in paragraph (2) which--

`(A) is propelled by any fuel subject to tax under section 4041 or 4081, and

`(B) is used in a trade or business or for the production of income (and is licensed and insured for such use).

`(2) HIGHWAY VEHICLE DESCRIBED- A highway vehicle is described in this paragraph if such vehicle is--

`(A) designed to engage in the daily collection of refuse or recyclables from homes or businesses and is equipped with a mechanism under which the vehicle's propulsion engine provides the power to operate a load compactor, or

`(B) designed to deliver ready mixed concrete on a daily basis and is equipped with a mechanism under which the vehicle's propulsion engine provides the power to operate a mixer drum to agitate and mix the product en route to the delivery site.

`(c) Exception for Vehicles Used by Governments, Etc- No credit shall be allowed under this section for any vehicle owned by any person at the close of a calendar year if such vehicle is used at any time during such year by--

`(1) the United States or an agency or instrumentality thereof, a State, a political subdivision of a State, or an agency or instrumentality of one or more States or political subdivisions, or

`(2) an organization exempt from tax under section 501(a).

`(d) Denial of Double Benefit- The amount of any deduction under this subtitle for any tax imposed by subchapter B of chapter 31 or part III of subchapter A of chapter 32 for any taxable year shall be reduced (but not below zero) by the amount of the credit determined under this subsection for such taxable year.'.

(b) Credit Made Part of General Business Credit- Subsection (b) of section 38 of the Internal Revenue Code of 1986 (relating to general business credit) is amended by striking `plus' at the end of paragraph (18), by striking the period at the end of paragraph (19) and inserting `, plus', and by adding at the end the following new paragraph:

`(20) the commercial power takeoff vehicles credit under section 45J(a).'.

(c) Clerical Amendment- The table of sections for 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 item:

`Sec. 45J. Commercial power takeoff vehicles credit.'.

(d) Effective Date- The amendments made by this section shall apply to taxable years ending after December 31, 2004.

END