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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1516 Introduced in House (IH)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Coastal Preservation Act of 2005''.

SEC. 2. INCOME TAX CREDIT TO RESTORE OR PROTECT WETLANDS FROM COASTAL 
              EROSION.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to other credits) is 
amended by inserting after section 30A the following new section:

``SEC. 30B. RESTORATION AND PROTECTION OF WETLANDS FROM COASTAL 
              EROSION.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the qualified coastal erosion abatement expenditures made by 
the taxpayer to carry out an eligible erosion abatement project on 
property owned by the taxpayer.
    ``(b) Year Credit Allowed.--The credit allowable by this section 
with respect to any eligible erosion abatement project shall be allowed 
for the taxable year during which the Corps of Engineers certifies that 
such project was properly completed.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Eligible erosion abatement project.--The term 
        `eligible erosion abatement project' means any project approved 
        by the Corps of Engineers to control or abate the erosion of 
        any shoreline in the United States experiencing a historical 
        erosion rate of greater than 2 feet per year based on data 
        published by the Bureau of Economic Geology of the University 
        of Texas.
            ``(2) Qualified coastal erosion abatement expenditure.--The 
        term `qualified coastal erosion abatement expenditure' means 
        any amount paid or incurred by the taxpayer which is directly 
        connected with the development and execution of a plan to 
        control or abate erosion in an area which is part of an 
        eligible erosion abatement project.
    ``(d) Limitation Based on Amount of Tax.--The credit allowed under 
subsection (a) for the taxable year shall not exceed the excess of--
            ``(1) the sum of the regular tax liability (as defined in 
        section 26(b)) plus the tax imposed by section 55, over
            ``(2) the sum of the credits allowable under subpart A and 
        sections 27, 29, and 30A for the taxable year.''.
    (b) Clerical Amendment.--The table of sections for such subpart B 
is amended by adding at the end the following new item:

``Sec. 30B. Restoration and protection of wetlands from coastal 
                            erosion.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to projects approved after the date of the enactment of this Act.
                                 <all>
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