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104TH CONGRESS

1ST SESSION H. R. 2054

To amend the Internal Revenue Code of 1986 to apply the rehabilitation

credit to historic ships, aircraft, and other vessels.

IN THE HOUSE OF REPRESENTATIVES

JULY 18, 1995

Mr. DICKS (for himself and Mr. MCDERMOTT) 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 apply

the rehabilitation credit to historic ships, aircraft, and

other vessels.

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

3 SECTION 1. APPLICATION OF REHABILITATION CREDIT TO

4 HISTORIC SHIPS AND AIRCRAFT.

5 (a) IN GENERAL.—Subsection (a) of section 47 of the

6 Internal Revenue Code of 1986 (relating to rehabilitation

7 credit) is amended—

8 (1) in paragraph (1) by striking ‘‘and’’ at the

9 end,
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1 (2) in paragraph (2), by striking the period at

2 the end and inserting ‘‘, and’’, and

3 (3) by adding at the end the following new

4 paragraph:

5 ‘‘(3) 20 percent of the vessel rehabilitation ex6 penditures with respect to any certified historic ves7 sel.’’

8 (b) CERTIFIED HISTORIC VESSELS.—Section 47 of

9 such Code is amended by adding at the end the following

10 new subsection:

11 ‘‘(e) DEFINITIONS AND SPECIAL RULES FOR TREAT12 MENT OF CERTIFIED HISTORIC VESSELS.—

13 ‘‘(1) CERTIFIED HISTORIC VESSELS.—For pur14 poses of this section, the term ‘certified historic ves15 sel’ means—

16 ‘‘(A) any ship, aircraft, or other vessel

17 which is listed in the National Register, and

18 ‘‘(B) any facility (including a pier, hangar,

19 or display facility) related to such ship, aircraft,

20 or other vessel, but only if substantially all of

21 the use of such facility is in connection with

22 such ship, aircraft, or vessel.

23 Such term does not include any building (or any

24 structural component of a building) which is a cer25 tified historic structure.
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1 ‘‘(2) VESSEL REHABILITATION EXPENDI2 TURES.—

3 ‘‘(A) IN GENERAL.—For purposes of this

4 section, the term ‘vessel rehabilitation expendi5 ture’ includes any amount properly chargeable

6 to capital account—

7 ‘‘(i) for property for which deprecia8 tion is allowable under section 168, and

9 ‘‘(ii) in connection with the substan10 tial rehabilitation of such certified historic

11 vessel.

12 For purposes of determining substantial reha13 bilitation under clause (ii), rules similar to the

14 rules of subsection (c)(1)(C) shall apply.

15 ‘‘(B) CERTAIN EXPENDITURES NOT IN16 CLUDED.—Rules similar to the rules of sub17 section (c)(2)(B) shall apply for purposes of

18 this paragraph.

19 ‘‘(C) ACQUISITION, CONSTRUCTION, AND

20 ENLARGEMENT OF CERTAIN NECESSARY FACILI21 TIES.—Subparagraph (B) shall not apply, with

22 respect to clauses (ii) and (iii) of subsection

23 (c)(2)(B), to acquisition, construction, or en24 largement of any facility referred to in para25 graph (1)(B) if—
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1 ‘‘(i) such facility (or the enlargement

2 of such facility) is necessary for access to

3 or housing of such certified historic vessel,

4 and

5 ‘‘(ii) no other suitable facility to pro6 vide access to or housing of such certified

7 historic vessel is reasonably available for

8 use by such historic vessel.

9 ‘‘(3) WHEN EXPENDITURES TAKEN INTO AC10 COUNT.—For purposes of this subsection, rules simi11 lar to the rules of subsections (b) and (d) shall

12 apply.’’

13 (c) EFFECTIVE DATE.—The amendments made by

14 this Act shall apply to amounts incurred after December

15 31, 1994, for taxable years ending after such date.

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