II

106TH CONGRESS

1ST SESSION S. 1759

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

for taxpayers owning certain commercial power takeoff vehicles.

IN THE SENATE OF THE UNITED STATES

OCTOBER 21, 1999

Mr. BREAUX (for himself and Mr. MACK) 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 allow a

refundable credit for taxpayers owning certain commercial power takeoff vehicles.

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 ‘‘Fuel Tax Equalization

5 Credit for Substantial Power Takeoff Vehicles Act’’.

6 SEC. 2. REFUNDABLE CREDIT FOR TAXPAYERS OWNING

7 COMMERCIAL POWER TAKEOFF VEHICLES.

8 (a) IN GENERAL.—Section 34 of the Internal Rev9 enue Code of 1986 (relating to certain uses of gasoline
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1 and special fuels) is amended by adding at the end the

2 following new subsection:

3 ‘‘(c) CREDIT FOR COMMERCIAL POWER TAKEOFF

4 VEHICLES.—

5 ‘‘(1) IN GENERAL.—There shall be allowed as a

6 credit against the tax imposed by this subtitle for

7 the taxable year the amount of $250 for each quali8 fied commercial power takeoff vehicle owned by the

9 taxpayer as of the close of the calendar year in

10 which or with which the taxable year of the taxpayer

11 ends.

12 ‘‘(2) QUALIFIED COMMERCIAL POWER TAKEOFF

13 VEHICLE.—For purposes of this subsection, the term

14 ‘qualified commercial power takeoff vehicle’ means

15 any highway vehicle described in paragraph (3)

16 which is propelled by any fuel subject to tax under

17 section 4041 or 4081 if such vehicle is used in a

18 trade or business or for the production of income

19 (and is licensed and insured for such use).

20 ‘‘(3) HIGHWAY VEHICLE DESCRIBED.—A high21 way vehicle is described in this paragraph if such ve22 hicle is—

23 ‘‘(A) designed to engage in the daily collec24 tion of refuse or recyclables from homes or

25 businesses and is equipped with a mechanism
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1 under which the vehicle’s propulsion engine pro2 vides the power to operate a load compactor, or

3 ‘‘(B) designed to deliver ready mixed con4 crete on a daily basis and is equipped with a

5 mechanism under which the vehicle’s propulsion

6 engine provides the power to operate a mixer

7 drum to agitate and mix the product en route

8 to the delivery site.

9 ‘‘(4) EXCEPTION FOR VEHICLES USED BY GOV10 ERNMENTS, ETC.—No credit shall be allowed under

11 this subsection for any vehicle owned by any person

12 at the close of a calendar year if such vehicle is used

13 at any time during such year by—

14 ‘‘(A) the United States or an agency or in15 strumentality thereof, a State, a political sub16 division of a State, or an agency or instrumen17 tality of one or more States or political subdivi18 sions, or

19 ‘‘(B) an organization exempt from tax

20 under section 501(a).

21 ‘‘(5) DENIAL OF DOUBLE BENEFIT.—The

22 amount of any deduction under this subtitle for any

23 tax imposed by subchapter B of chapter 31 or part

24 III of subchapter A of chapter 32 for any taxable

25 year shall be reduced (but not below zero) by the
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1 amount of the credit determined under this sub2 section for such taxable year.’’

3 (b) EFFECTIVE DATE.—The amendment made by

4 this section shall apply to taxable years ending after De5 cember 31, 1999.

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