I 

112TH CONGRESS 

2D SESSION H. R. 4001 

To amend the Internal Revenue Code of 1986 to allow partnerships invested 

in infrastructure property to be treated as publicly traded partnerships, 

to reduce the depreciation recovery periods for such property, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 9, 2012 

Mr. CAMPBELL introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to allow partnerships invested in infrastructure property to be treated 

as publicly traded partnerships, to reduce the depreciation recovery periods for such property, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. INCENTIVES FOR INFRASTRUCTURE INVEST4 MENTS. 

5 (a) INFRASTRUCTURE INCOME TO BE QUALIFYING

6 INCOME FOR PURPOSES OF DETERMINING PUBLICLY

7 TRADED PARTNERSHIP STATUS.— 


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1 (1) IN GENERAL.—Paragraph (1) of section 

2 7704(d) of the Internal Revenue Code of 1986 (de3 fining qualifying income) is amended by redesig4 nating subparagraphs (F) and (G) as subparagraphs 

5 (G) and (H), respectively, and by inserting after 

6 subparagraph (E) the following new subparagraph: 

7 ‘‘(F) income and gains from the use, sale, 

8 or exchange of infrastructure property,’’. 

9 (2) INFRASTRUCTURE PROPERTY.—Subsection 

10 (d) of section 7704 of such Code is amended by add11 ing at the end the following new paragraph: 

12 ‘‘(6) INFRASTRUCTURE PROPERTY.—The term 

13 ‘infrastructure property’ means property which is 

14 part of any of the following: 

15 ‘‘(A) Roads and related improvements. 

16 ‘‘(B) Train tracks and related improve17 ments. 

18 ‘‘(C) Airports. 

19 ‘‘(D) Docks and wharves. 

20 ‘‘(E) Facilities for the furnishing of water. 

21 ‘‘(F) Sewage facilities. 

22 ‘‘(G) Solid waste disposal facilities. 

23 ‘‘(H) Facilities for the generation, trans24 mission, and distribution of electricity, includVerDate Mar 15 2010 06:43 Feb 10, 2012 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4001.IH H4001

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1 ing property described in clause (iii) or (iv) of 

2 section 168(e)(3)(D). 

3 ‘‘(I) Facilities for the transmission and 

4 distribution of natural gas. 

5 ‘‘(J) Communications facilities. 

6 For purposes of subparagraphs (A) and (B), related 

7 improvements include bridges, tunnels, and traffic 

8 control equipment.’’. 

9 (b) EXPANSION OF DEDUCTION FOR DOMESTIC PRO10 DUCTION ACTIVITIES IN THE CASE OF PUBLICLY TRADED

11 PARTNERSHIPS.— 

12 (1) REDUCTION FOR OIL RELATED QUALIFIED

13 PRODUCTION ACTIVITIES INCOME NOT TO APPLY.— 

14 Paragraph (9) of section 199(d) of such Code is 

15 amended by adding at the end the following new 

16 subparagraph: 

17 ‘‘(D) EXCEPTION FOR INCOME FROM PUB18 LICLY TRADED PARTNERSHIPS.—Subparagraph 

19 (A) shall not apply to income derived from any 

20 publicly traded partnership (as defined in sec21 tion 7704(b)).’’. 

22 (2) DISTRIBUTION AND TRANSMISSION ACTIVI23 TIES OF A PUBLICLY TRADED PARTNERSHIP TO BE

24 ELIGIBLE.—Subparagraph (B) of section 199(c)(4) 


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1 of such Code is amended by adding at the end the 

2 following new flush sentence: 

3 ‘‘Clause (ii) shall not apply to the activities of 

4 a publicly traded partnership (as defined in sec5 tion 7704(b)).’’. 

6 (c) INFRASTRUCTURE PROPERTY TREATED AS 5- 

7 YEAR PROPERTY.— 

8 (1) IN GENERAL.—Subparagraph (B) of section 

9 168(e)(3) of such Code is amended by striking 

10 ‘‘and’’ at the end of clause (vi), by striking the pe11 riod at the end of clause (vii) and inserting ‘‘, and’’, 

12 and by inserting after clause (vii) the following new 

13 clause: 

14 ‘‘(viii) infrastructure property (as de15 fined in section 7704(d)(6)).’’. 

16 (2) CONFORMING AMENDMENTS.— 

17 (A) Subparagraph (C) of section 168(e)(3) 

18 of such Code is amended by striking clause (i) 

19 and by redesignating the succeeding clauses ac20 cordingly. 

21 (B) Subparagraph (D) of such section is 

22 amended by adding ‘‘and’’ at the end of clause 

23 (i), by striking ‘‘, and’’ at the end of clause (ii) 

24 and inserting a period, and by striking clauses 

25 (iii) and (iv). 


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1 (C) Subparagraph (E) of such section is 

2 amended by striking clauses (i), (ii), and (vii) 

3 and by redesignating clauses (iii), (iv), (v), (vi), 

4 (viii), and (ix) as clauses (i), (ii), (iii), (iv), (v), 

5 and (vi), respectively. 

6 (D) Subparagraph (F) of such section is 

7 hereby repealed. 

8 (E) Subsection (e) of section 168 of such 

9 Code is amended by striking paragraphs (4) 

10 and (5) and by redesignating the succeeding 

11 paragraphs accordingly. 

12 (F) The table contained in section 

13 168(g)(3)(B) of such Code is amended by strik14 ing the item relating to subparagraph (C)(i) 

15 and all that follows and inserting the following: 

‘‘(C)(ii) ............................................................................................ 22

(C)(iii) ............................................................................................. 14

(D)(i) .............................................................................................. 15

(D)(ii) ............................................................................................. 20

(E)(i) ............................................................................................... 20

(E)(ii) .............................................................................................. 39

(E)(iii) ............................................................................................. 39

(E)(iv) ............................................................................................. 20

(E)(v) .............................................................................................. 35

(E)(vi) ............................................................................................. 39’’. 

16 (d) LIKE-KIND EXCHANGE TREATMENT FOR EX17 CHANGES OF INFRASTRUCTURE PROPERTY.—Section 

18 1031 of such Code (relating to exchange of property held 

19 for productive use or investment) is amended by adding 

20 at the end the following new subsection: 


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1 ‘‘(j) ALL INFRASTRUCTURE PROPERTY TREATED AS

2 LIKE KIND.—Except as provided in subsection (h), each 

3 real property— 

4 ‘‘(1) which is infrastructure property (as de5 fined in section 7704(d)(6)), and 

6 ‘‘(2) which is held for productive use in a trade 

7 or business or for investment, 

8 shall be treated as being of a like kind to every other real 

9 property which is infrastructure property (as so defined) 

10 and which is so held.’’. 

11 (e) EFFECTIVE DATES.— 

12 (1) IN GENERAL.—Except as provided in para13 graphs (2) and (3), the amendments made by this 

14 section shall apply to taxable years beginning after 

15 the date of the enactment of this Act. 

16 (2) DEPRECIATION.—The amendments made by 

17 subsection (c) shall apply to property placed in serv18 ice after the date of the enactment of this Act in 

19 taxable years ending after such date. 

20 (3) EXCHANGES.—The amendment made by 

21 subsection (d) shall apply to transfers after the date 

22 of the enactment of this Act in taxable years ending 

23 after such date. 

Æ 


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