II 

112TH CONGRESS 

1ST SESSION S. 836 

To amend the Internal Revenue Code of 1986 to provide special depreciation 

and amortization rules for highway and related property subject to longterm leases, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 14, 2011 

Mr. BINGAMAN (for himself and Mr. GRASSLEY) 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 provide 

special depreciation and amortization rules for highway 

and related property subject to long-term leases, and 

for other purposes. 

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 ‘‘Transportation Access 

5 for All Americans Act’’. 


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•S 836 IS

1 SEC. 2. DEPRECIATION AND AMORTIZATION RULES FOR 

2 HIGHWAY AND RELATED PROPERTY SUBJECT 

3 TO LONG-TERM LEASES. 

4 (a) ACCELERATED COST RECOVERY.— 

5 (1) IN GENERAL.—Section 168(g)(1) of the In6 ternal Revenue Code of 1986 is amended by striking 

7 ‘‘and’’ at the end of subparagraph (D), by redesig8 nating subparagraph (E) as subparagraph (F), and 

9 by inserting after subparagraph (D) the following 

10 new subparagraph: 

11 ‘‘(E) any applicable leased highway prop12 erty,’’. 

13 (2) RECOVERY PERIOD.—The table contained in 

14 subparagraph (C) of section 168(g)(2) of such Code 

15 is amended by redesignating clause (iv) as clause (v) 

16 and by inserting after clause (iii) the following new 

17 clause: 

‘‘(iv) Applicable leased highway property ........... 45 years.’’. 

18 (3) APPLICABLE LEASED HIGHWAY PROPERTY

19 DEFINED.— 

20 (A) IN GENERAL.—Section 168(g) of such 

21 Code is amended by redesignating paragraph 

22 (7) as paragraph (8) and by inserting after 

23 paragraph (6) the following new paragraph: 


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•S 836 IS

1 ‘‘(7) APPLICABLE LEASED HIGHWAY PROP2 ERTY.—For purposes of paragraph (1)(E)— 

3 ‘‘(A) IN GENERAL.—The term ‘applicable 

4 leased highway property’ means property to 

5 which this section otherwise applies which— 

6 ‘‘(i) is subject to an applicable lease, 

7 and 

8 ‘‘(ii) is placed in service before the 

9 date of such lease. 

10 ‘‘(B) APPLICABLE LEASE.—The term ‘ap11 plicable lease’ means a lease or other arrange12 ment— 

13 ‘‘(i) which is between the taxpayer 

14 and a State or political subdivision thereof, 

15 or any agency or instrumentality of either, 

16 and 

17 ‘‘(ii) under which the taxpayer— 

18 ‘‘(I) leases a highway and associ19 ated improvements, 

20 ‘‘(II) receives a right-of-way on 

21 the public lands underlying such high22 way and improvements, and 

23 ‘‘(III) receives a grant of a fran24 chise or other intangible right permit25 ting the taxpayer to receive funds reVerDate Mar 15 2010 01:31 Apr 16, 2011 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S836.IS S836

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•S 836 IS

1 lating to the operation of such high2 way.’’. 

3 (B) CONFORMING AMENDMENT.—Subpara4 graph (F) of section 168(g)(1) (as redesignated 

5 by subsection (a)(1)) is amended by striking 

6 ‘‘paragraph (7)’’ and inserting ‘‘paragraph 

7 (8)’’. 

8 (b) AMORTIZATION OF INTANGIBLES.—Section 

9 197(f) of the Internal Revenue Code of 1986 is amended 

10 by adding at the end the following new paragraph: 

11 ‘‘(11) INTANGIBLES RELATING TO APPLICABLE

12 LEASED HIGHWAY PROPERTY.—In the case of any 

13 section 197 intangible property which is subject to 

14 an applicable lease (as defined in section 

15 168(g)(8)(B)), the amortization period under this 

16 section shall not be less than the term of the appli17 cable lease. For purposes of the preceding sentence, 

18 rules similar to the rules of section 168(i)(3)(A) 

19 shall apply in determining the term of the applicable 

20 lease.’’. 

21 (c) NO PRIVATE ACTIVITY BOND FINANCING OF AP22 PLICABLE LEASES.—Section 147(e) of the Internal Rev23 enue Code of 1986 is amended by inserting ‘‘, or to fi24 nance any applicable lease (as defined in section 

25 168(g)(8)(B))’’ after ‘‘premises’’. 


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•S 836 IS

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

2 this section shall apply to leases entered into after the date 

3 of the enactment of this Act. 

Æ 


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