I 

109TH CONGRESS 

1ST SESSION H. R. 1516 

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

income tax for expenditures incurred by the taxpayer to restore or 

protect wetlands from coastal erosion. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 6, 2005 

Mr. JINDAL 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 against income tax for expenditures incurred by 

the taxpayer to restore or protect wetlands from coastal 

erosion. 

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 ‘‘Coastal Preservation 

5 Act of 2005’’. 
2 

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1 SEC. 2. INCOME TAX CREDIT TO RESTORE OR PROTECT 

2 WETLANDS FROM COASTAL EROSION. 

3 (a) IN GENERAL.—Subpart B of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 (relating to other credits) is amended by inserting 

6 after section 30A the following new section: 

7 ‘‘SEC. 30B. RESTORATION AND PROTECTION OF WETLANDS 

8 FROM COASTAL EROSION. 

9 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al10 lowed as a credit against the tax imposed by this chapter 

11 for the taxable year an amount equal to the qualified 

12 coastal erosion abatement expenditures made by the tax13 payer to carry out an eligible erosion abatement project 

14 on property owned by the taxpayer. 

15 ‘‘(b) YEAR CREDIT ALLOWED.—The credit allowable 

16 by this section with respect to any eligible erosion abate17 ment project shall be allowed for the taxable year during 

18 which the Corps of Engineers certifies that such project 

19 was properly completed. 

20 ‘‘(c) DEFINITIONS.—For purposes of this section— 

21 ‘‘(1) ELIGIBLE EROSION ABATEMENT

22 PROJECT.—The term ‘eligible erosion abatement 

23 project’ means any project approved by the Corps of 

24 Engineers to control or abate the erosion of any 

25 shoreline in the United States experiencing a histor26 ical erosion rate of greater than 2 feet per year 
3 

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1 based on data published by the Bureau of Economic 

2 Geology of the University of Texas. 

3 ‘‘(2) QUALIFIED COASTAL EROSION ABATE4 MENT EXPENDITURE.—The term ‘qualified coastal 

5 erosion abatement expenditure’ means any amount 

6 paid or incurred by the taxpayer which is directly 

7 connected with the development and execution of a 

8 plan to control or abate erosion in an area which is 

9 part of an eligible erosion abatement project. 

10 ‘‘(d) LIMITATION BASED ON AMOUNT OF TAX.—The 

11 credit allowed under subsection (a) for the taxable year 

12 shall not exceed the excess of— 

13 ‘‘(1) the sum of the regular tax liability (as de14 fined in section 26(b)) plus the tax imposed by sec15 tion 55, over 

16 ‘‘(2) the sum of the credits allowable under sub17 part A and sections 27, 29, and 30A for the taxable 

18 year.’’. 

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

20 for such subpart B is amended by adding at the end the 

21 following new item: 

‘‘Sec. 30B. Restoration and protection of wetlands from coastal erosion.’’. 

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

23 this section shall apply to projects approved after the date 

24 of the enactment of this Act. 

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