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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 687 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                 S. 687

To amend the Internal Revenue Code of 1986 to provide a business credit 
      against income for the purchase of fishing safety equipment.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           February 27, 2007

  Ms. Collins (for herself and Mr. Kennedy) 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 a business credit 
      against income for the purchase of fishing safety equipment.

    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 ``Commercial Fishermen Safety Act of 
2007''.

SEC. 2. CREDIT FOR PURCHASE OF FISHING SAFETY EQUIPMENT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business-related 
credits) is amended by adding at the end the following new section:

``SEC. 45O. FISHING SAFETY EQUIPMENT CREDIT.

    ``(a) General Rule.--For purposes of section 38, in the case of an 
eligible taxpayer, the fishing safety equipment credit determined under 
this section for the taxable year is 75 percent of the amount of 
qualified fishing safety equipment expenses paid or incurred by the 
taxpayer during the taxable year.
    ``(b) Limitation on Maximum Credit.--The credit allowed under 
subsection (a) with respect to a taxpayer for the taxable year shall 
not exceed $1,500.
    ``(c) Eligible Taxpayer.--For purposes of this section, the term 
`eligible taxpayer' means a taxpayer engaged in a fishing business.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Fishing business.--The term `fishing business' means 
        the conduct of commercial fishing as defined in section 3 of 
        the Magnuson-Stevens Fishery Conservation and Management Act 
        (16 U.S.C. 1802).
            ``(2) Qualified fishing safety equipment expenses.--
                    ``(A) In general.--The term `qualified fishing 
                safety equipment expenses' means an amount paid or 
                incurred for fishing safety equipment for use by the 
                taxpayer in connection with a fishing business.
                    ``(B) Fishing safety equipment.--The term `fishing 
                safety equipment' means--
                            ``(i) lifesaving equipment required to be 
                        carried by a vessel under section 4502 of title 
                        46, United States Code, and
                            ``(ii) any maintenance of such equipment 
                        required under such section.
    ``(e) Special Rules.--
            ``(1) In general.--Rules similar to the rules of 
        subsections (c), (d), and (e) of section 52 shall apply for 
        purposes of this section.
            ``(2) Aggregation rules.--All persons treated as a single 
        employer under subsection (a) or (b) of section 52 or 
        subsection (m) or (o) of section 414 shall be treated as one 
        person for purposes of subsection (a).
    ``(f) Denial of Double Benefit.--No deduction shall be allowed 
under this chapter (other than a credit under this section) for any 
amount taken into account in determining the credit under this section.
    ``(g) Basis Adjustment.--For purposes of this subtitle, if a credit 
is allowed under this section with respect to any equipment, the basis 
of such equipment shall be reduced by the amount of the credit so 
allowed.''.
    (b) Conforming Amendments.--
            (1) Section 38(b) of the Internal Revenue Code of 1986 
        (relating to general business credit) is amended by striking 
        ``plus'' at the end of paragraph (30), by striking the period 
        at the end of paragraph (31) and inserting ``, plus'', and by 
        adding at the end the following new paragraph:
            ``(32) the fishing safety equipment credit determined under 
        section 45O(a).''.
            (2) Subsection (a) of section 1016 of such Code is amended 
        by striking ``and'' at the end of paragraph (36), by striking 
        the period at the end of paragraph (37) and inserting ``, 
        and'', and by adding at the end the following new paragraph:
            ``(38) in the case of equipment with respect to which a 
        credit was allowed under section 45O, to the extent provided in 
        section 45O(g).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 45O. Fishing safety equipment credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
                                 <all>
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