II 

111TH CONGRESS 

1ST SESSION S. 2081 

To amend the Internal Revenue Code of 1986 to accelerate locomotive fuel 

savings nationwide and provide incentives for owners of high polluting 

locomotives to replace such locomotives with newly built or newly remanufactured fuel efficient and less polluting locomotives. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 29, 2009 

Mr. SPECTER (for himself and Mr. CASEY) 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 accelerate 

locomotive fuel savings nationwide and provide incentives 

for owners of high polluting locomotives to replace such 

locomotives with newly built or newly remanufactured 

fuel efficient and less polluting locomotives. 

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 ‘‘Locomotive Fleet In5 vestment Act of 2009’’. 


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•S 2081 IS

1 SEC. 2. CREDIT FOR LOCOMOTIVE PROPERTY. 

2 (a) IN GENERAL.—Subpart D of part IV of sub3 chapter A of chapter 1 of the Internal Revenue Code of 

4 1986 (relating to business-related credits) is amended by 

5 adding at the end the following new section: 

6 ‘‘SEC. 45R. LOCOMOTIVE PROPERTY CREDIT. 

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

8 the locomotive property credit determined under this sec9 tion for the taxable year is an amount equal to 30 percent 

10 of the cost of the qualified locomotive property placed in 

11 service by the taxpayer during the taxable year. 

12 ‘‘(b) QUALIFIED LOCOMOTIVE PROPERTY.—For pur13 poses of this section, the term ‘qualified locomotive prop14 erty’ means any newly built or newly remanufactured die15 sel line-haul, passenger, or switch locomotive (whether or 

16 not owned by a railroad)— 

17 ‘‘(1) which is acquired by the taxpayer after 

18 December 31, 2009, 

19 ‘‘(2) the original use of which commences with 

20 the taxpayer, and 

21 ‘‘(3) meets the applicable standards under title 

22 II of the Clean Air Act (42 U.S.C. 7401 et seq.) for 

23 emissions from locomotives or locomotive engines, as 

24 in effect on December 31, 2009. 

25 ‘‘(c) SPECIAL RULES.— 


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1 ‘‘(1) COORDINATION WITH OTHER CREDITS.— 

2 The cost of any property taken into account in de3 termining the credit under subsection (a) may not be 

4 taken into account in determining a credit under any 

5 other provision of this title. 

6 ‘‘(2) BASIS ADJUSTMENT.—If a credit is al7 lowed under this section with respect to any quali8 fied locomotive property, the basis of such property 

9 shall be reduced by the amount of the credit so al10 lowed. 

11 ‘‘(3) RECAPTURE.—The benefit of any credit 

12 allowable under subsection (a) shall, under regula13 tions prescribed by the Secretary, be recaptured with 

14 respect to any qualified locomotive property that is 

15 sold or otherwise disposed of by the taxpayer during 

16 the 5-year period beginning on the date on which 

17 such property is originally placed in service. The 

18 preceding sentence shall not apply to locomotive 

19 property that is sold by and subsequently leased 

20 back to the taxpayer. 

21 ‘‘(d) TERMINATION.—This section shall not apply to 

22 any property placed in service after December 31, 2013.’’. 

23 (b) CREDIT ALLOWED AS BUSINESS CREDIT.—Sec24 tion 38(b) of such Code is amended by striking ‘‘plus’’ 

25 at the end of paragraph (34), by striking the period at 


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•S 2081 IS

1 the end of paragraph (35) and inserting ‘‘, plus’’, and by 

2 adding at the end the following new paragraph: 

3 ‘‘(36) the locomotive property credit determined 

4 under section 45R(a).’’. 

5 (c) COORDINATION WITH SECTION 55.—Section 

6 38(c)(4)(B) of such Code is amended by redesignating 

7 clauses (vi), (vii), and (viii) as clauses (vii), (viii), and (ix), 

8 respectively, and by inserting after clause (v) the following 

9 new clause: 

10 ‘‘(vi) the credit determined under sec11 tion 45R(a),’’. 

12 (d) CONFORMING AMENDMENT.—Subsection (a) of 

13 section 1016 of such Code is amended by striking ‘‘and’’ 

14 at the end of paragraph (36), by striking the period at 

15 the end of paragraph (37) and inserting ‘‘, and’’, and by 

16 adding at the end the following new paragraph: 

17 ‘‘(38) to the extent provided in section 

18 45R(c)(2).’’. 

19 (e) CLERICAL AMENDMENT.—The table of sections 

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

21 of such Code is amended by inserting after the item relat22 ing to section 45Q the following new item: 

‘‘Sec. 45R. Locomotive property credit.’’. 


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•S 2081 IS

1 (f) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to property placed in service after 

3 December 31, 2009. 

Æ 


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