I 

111TH CONGRESS 

2D SESSION H. R. 4494 

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

coal freight cars. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 21, 2010 

Mr. DAVIS of Illinois 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 a 

credit for lightweight coal freight cars. 

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

3 SECTION 1. LIGHTWEIGHT COAL FREIGHT CAR CREDIT. 

4 (a) IN GENERAL.—Subpart D of part IV of sub5 chapter A of chapter 1 of the Internal Revenue Code of 

6 1986 (relating to business related credits) is amended by 

7 adding at the end the following new section: 

8 ‘‘SEC. 45R. LIGHTWEIGHT COAL FREIGHT CAR CREDIT. 

9 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

10 the case of a taxpayer who is engaged in the trade or busiVerDate Nov 24 2008 02:53 Jan 22, 2010 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4494.IH H4494

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1 ness of transporting coal by rail or financing freight cars 

2 for use in such a trade or business, the lightweight coal 

3 freight car credit determined under this section for any 

4 taxable year shall be an amount equal to 30 percent of 

5 the basis of each eligible lightweight coal freight car placed 

6 in service by the taxpayer during the taxable year. 

7 ‘‘(b) ELIGIBLE LIGHTWEIGHT COAL FREIGHT

8 CAR.—For purposes of this section— 

9 ‘‘(1) IN GENERAL.—The term ‘eligible light10 weight coal freight car’ means any freight car— 

11 ‘‘(A) designed to carry coal by rail, 

12 ‘‘(B) the tare weight of which does not ex13 ceed 50,000 pounds, and 

14 ‘‘(C) substantially all of the manufacturing 

15 of which occurred in the United States. 

16 ‘‘(2) SUBSTANTIALLY ALL.—Substantially all of 

17 the manufacturing of a freight car shall be treated 

18 as having occurred in the United States if— 

19 ‘‘(A) the cost of the freight car’s compo20 nents produced in the United States is more 

21 than 80 percent of the cost of all components 

22 of the freight car, and 

23 ‘‘(B) final assembly of the freight car oc24 curs in the United States. 


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1 ‘‘(c) BASIS ADJUSTMENT.—For purposes of this sub2 title, if a credit is allowed under this section with respect 

3 to any freight car, the basis of such car shall be reduced 

4 by the amount of the credit so allowed. 

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

6 any freight car placed in service after December 31, 

7 2013.’’. 

8 (b) CREDIT MADE PART OF GENERAL BUSINESS

9 CREDIT.—Subsection (b) of section 38 of such Code is 

10 amended by striking ‘‘plus’’ at the end of paragraph (34), 

11 by striking the period at the end of paragraph (35) and 

12 inserting ‘‘, plus’’, and by adding at the end the following 

13 new paragraph: 

14 ‘‘(36) the lightweight coal freight car credit de15 termined under section 45R(a).’’. 

16 (c) CONFORMING AMENDMENTS.—Subsection (a) of 

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

18 at the end of paragraph (35), by striking the period at 

19 the end of paragraph (36) and inserting ‘‘, and’’, and by 

20 adding at the end the following new paragraph: 

21 ‘‘(37) to the extent provided in section 

22 45R(c).’’. 

23 (d) CLERICAL AMENDMENT.—The table of sections 

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


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1 of such Code is amended by adding at the end the fol2 lowing new item: 

‘‘Sec. 45R. Lightweight coal freight car credit.’’. 

3 (e) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to freight cars placed in service 

5 after the date of the enactment of this Act. 

Æ 


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