I 

109TH CONGRESS 

1ST SESSION H. R. 2102 

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

the income tax for expenses incurred in restoring and protecting coastal 

lands. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 4, 2005 

Mr. MELANCON (for himself, Mr. BAKER, Mr. MCCRERY, Mr. JEFFERSON, 

Mr. ALEXANDER, Mr. JINDAL, and Mr. BOUSTANY) 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 provide 

a credit against the income tax for expenses incurred 

in restoring and protecting coastal lands. 

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 Restoration 

5 Tax Credit Act of 2005’’. 

6 SEC. 2. CREDIT FOR EXPENSES INCURRED IN RESTORING 

7 AND PROTECTING COASTAL LANDS. 

8 (a) IN GENERAL.—Subpart B of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 
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1 1986 is amended by adding at the end the following new 

2 section: 

3 ‘‘SEC. 30B. CREDIT FOR EXPENSES INCURRED IN RESTOR4 ING AND PROTECTING COASTAL LANDS. 

5 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al6 lowed as a credit against the tax imposed by this chapter 

7 for the taxable year an amount equal to the qualified ex8 penditures of the taxpayer for the taxable year. 

9 ‘‘(b) LIMITATIONS.— 

10 ‘‘(1) MAXIMUM CREDIT.—The credit allowed 

11 under subsection (a) for a taxable year shall not ex12 ceed $2,000,000. 

13 ‘‘(2) LIMITATION BASED ON AMOUNT OF

14 TAX.—The credit allowed under subsection (a) for 

15 the taxable year shall not exceed the excess of— 

16 ‘‘(A) the sum of the regular tax liability 

17 (as defined in section 26(b)) plus the tax im18 posed by section 55, over 

19 ‘‘(B) the sum of the credits allowable 

20 under subpart A and sections 27 and 30A for 

21 the taxable year. 

22 ‘‘(c) QUALIFIED EXPENDITURES.—For purposes of 

23 this section— 
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1 ‘‘(1) IN GENERAL.—The term ‘qualified expend2 itures’ means amounts paid or incurred by the tax3 payer for an approved project. 

4 ‘‘(2) APPROVED PROJECT.—The term ‘approved 

5 project’ means any project approved by the Natural 

6 Resources Conservation Service to restore or protect 

7 coastal lands located in the United States. 

8 ‘‘(d) CARRYOVERS ALLOWED.— 

9 ‘‘(1) IN GENERAL.—If the credit amount allow10 able under subsection (a) for a taxable year exceeds 

11 the amount of the limitation under subsection (c) for 

12 such taxable year (referred to as the ‘unused credit 

13 year’ in this paragraph), such excess shall be allowed 

14 as a credit carryforward for each of the taxable 

15 years following the unused credit year or as a credit 

16 carryback for each of the taxable years preceeding 

17 the unused credit year. 

18 ‘‘(2) RULES.—For purposes of paragraph (1), 

19 rules similar to the rules of section 39 shall apply, 

20 except that— 

21 ‘‘(A) subsection (a)(1) shall be applied— 

22 ‘‘(i) by substituting ‘3 taxable years’ 

23 for ‘1 taxable years’ in subparagraph (A) 

24 thereof, and 
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1 ‘‘(ii) by substituting ‘5 taxable years’ 

2 for ‘20 taxable years’ in subparagraph (B) 

3 thereof, and 

4 ‘‘(B) subsection (a)(2) shall be applied— 

5 ‘‘(i) by substituting ‘8 taxable years’ 

6 for ‘21 taxable years’ in subparagraph (A) 

7 thereof, and 

8 ‘‘(ii) by substituting ‘7 taxable years’ 

9 for ‘20 taxable years’ in subparagraph (B). 

10 ‘‘(e) SPECIAL RULES.— 

11 ‘‘(1) BASIS REDUCTION.—The basis of any 

12 property for which a credit is allowable under sub13 section (a) shall be reduced by the amount of such 

14 credit (determined without regard to subsection 

15 (b)(2)). 

16 ‘‘(2) NO DOUBLE BENEFIT.—The amount of 

17 any deduction or credit allowable under this chapter 

18 (other than the credit allowable under subsection 

19 (a)), shall be reduced by the amount of credit al20 lowed under subsection (a) (determined without re21 gard to subsection (b)(2)) for the taxable year. 

22 ‘‘(3) REDUCTION FOR ASSISTANCE.—The 

23 amount taken into account under subsection (a) with 

24 respect to any project shall be reduced by the 

25 amount of any Federal, State, or local grant or 
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1 other assistance received by the taxpayer during 

2 such taxable year or any prior taxable year which 

3 was used to make qualified expenditures and which 

4 was not included in the gross income of such tax5 payer.’’. 

6 (b) BASIS ADJUSTMENT.—Section 1016(a) of such 

7 Code is amended by striking ‘‘and’’ at the end of para8 graph (30), by striking the period at the end of paragraph 

9 (31) and inserting ‘‘, and’’, and by adding at the end the 

10 following new paragraph: 

11 ‘‘(32) to the extent provided in section 

12 30B(e)(1).’’. 

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

14 for subpart B of part IV of subchapter A of chapter 1 

15 of such Code is amended by inserting after the item relat16 ing to section 30A the following new item: 

‘‘Sec. 30B. Credit for expenses incurred in restoring and protecting coastal 

lands.’’. 

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

18 this section shall apply to taxable years beginning after 

19 December 31, 2004. 

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