II 

109TH CONGRESS 

1ST SESSION S. 181 

To amend the Internal Revenue Code of 1986 to allow a credit against 

income tax for taxpayers owning certain commercial power takeoff vehicles. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 26, 2005 

Mr. ENSIGN 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 allow a 

credit against income tax for taxpayers owning certain 

commercial power takeoff vehicles.

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Fuel Tax Equalization 

5 Credit for Substantial Power Takeoff Vehicles Act’’. 

6 SEC. 2. CREDIT FOR TAXPAYERS OWNING COMMERCIAL 

7 POWER TAKEOFF VEHICLES. 

8 (a) IN GENERAL.—Subpart D of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 
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1 1986 (relating to business-related credits) is amended by 

2 adding at the end the following new section: 

3 ‘‘SEC. 45J. COMMERCIAL POWER TAKEOFF VEHICLES 

4 CREDIT. 

5 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

6 the amount of the commercial power takeoff vehicles credit 

7 determined under this section for the taxable year is $250 

8 for each qualified commercial power takeoff vehicle owned 

9 by the taxpayer as of the close of the calendar year with 

10 or within which the taxable year ends. 

11 ‘‘(b) DEFINITIONS.—For purposes of this section— 

12 ‘‘(1) QUALIFIED COMMERCIAL POWER TAKEOFF

13 VEHICLE.—The term ‘qualified commercial power 

14 takeoff vehicle’ means any highway vehicle described 

15 in paragraph (2) which— 

16 ‘‘(A) is propelled by any fuel subject to tax 

17 under section 4041 or 4081, and 

18 ‘‘(B) is used in a trade or business or for 

19 the production of income (and is licensed and 

20 insured for such use). 

21 ‘‘(2) HIGHWAY VEHICLE DESCRIBED.—A high22 way vehicle is described in this paragraph if such ve23 hicle is— 

24 ‘‘(A) designed to engage in the daily collec25 tion of refuse or recyclables from homes or 
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1 businesses and is equipped with a mechanism 

2 under which the vehicle’s propulsion engine pro3 vides the power to operate a load compactor, or 

4 ‘‘(B) designed to deliver ready mixed con5 crete on a daily basis and is equipped with a 

6 mechanism under which the vehicle’s propulsion 

7 engine provides the power to operate a mixer 

8 drum to agitate and mix the product en route 

9 to the delivery site. 

10 ‘‘(c) EXCEPTION FOR VEHICLES USED BY GOVERN11 MENTS, ETC.—No credit shall be allowed under this sec12 tion for any vehicle owned by any person at the close of 

13 a calendar year if such vehicle is used at any time during 

14 such year by— 

15 ‘‘(1) the United States or an agency or instru16 mentality thereof, a State, a political subdivision of 

17 a State, or an agency or instrumentality of one or 

18 more States or political subdivisions, or 

19 ‘‘(2) an organization exempt from tax under 

20 section 501(a). 

21 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—The amount of 

22 any deduction under this subtitle for any tax imposed by 

23 subchapter B of chapter 31 or part III of subchapter A 

24 of chapter 32 for any taxable year shall be reduced (but 
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1 not below zero) by the amount of the credit determined 

2 under this subsection for such taxable year.’’. 

3 (b) CREDIT MADE PART OF GENERAL BUSINESS

4 CREDIT.—Subsection (b) of section 38 of the Internal 

5 Revenue Code of 1986 (relating to general business credit) 

6 is amended by striking ‘‘plus’’ at the end of paragraph 

7 (18), by striking the period at the end of paragraph (19) 

8 and inserting ‘‘, plus’’, and by adding at the end the fol9 lowing new paragraph: 

10 ‘‘(20) the commercial power takeoff vehicles 

11 credit under section 45J(a).’’. 

12 (c) CLERICAL AMENDMENT.—The table of sections 

13 for subpart D of part IV of subchapter A of chapter 1 

14 of the Internal Revenue Code of 1986 is amended by add15 ing at the end the following new item:

‘‘Sec. 45J. Commercial power takeoff vehicles credit.’’.

16 (d) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to taxable years ending after De18 cember 31, 2004.

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