I

107TH CONGRESS

1ST SESSION H. R. 1438

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

income tax for taxpayers owning certain commercial power takeoff vehicles.

IN THE HOUSE OF REPRESENTATIVES

APRIL 4, 2001

Mr. COLLINS 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 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. CREDIT FOR TAXPAYERS OWNING COMMERCIAL

7 POWER TAKEOFF VEHICLES.

8 (a) IN GENERAL.—Subpart D of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of
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1 1986 (relating to business-related credits) is amended by

2 adding at the end the following new section:

3 ‘‘SEC. 45E. COMMERCIAL POWER TAKEOFF VEHICLES

4 CREDIT.

5 ‘‘(a) GENERAL RULE.—For purposes of section 38,

6 the amount of the commercial power takeoff vehicles credit

7 determined under this section for the taxable year is $250

8 for each qualified commercial power takeoff vehicle owned

9 by the taxpayer as of the close of the calendar year in

10 which or with which the taxable year of the taxpayer ends.

11 ‘‘(b) DEFINITIONS.—For purposes of this section—

12 ‘‘(1) QUALIFIED COMMERCIAL POWER TAKEOFF

13 VEHICLE.—The term ‘qualified commercial power

14 takeoff vehicle’ means any highway vehicle described

15 in paragraph (2) which is propelled by any fuel sub16 ject to tax under section 4041 or 4081 if such vehi17 cle is used in a trade or business or for the produc18 tion of income (and is licensed and insured for such

19 use).

20 ‘‘(2) 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 ‘‘(c) EXCEPTION FOR VEHICLES USED BY GOVERN10 MENTS, ETC.—No credit shall be allowed under this sec11 tion for any vehicle owned by any person at the close of

12 a calendar year if such vehicle is used at any time during

13 such year by—

14 ‘‘(1) the United States or an agency or instru15 mentality thereof, a State, a political subdivision of

16 a State, or an agency or instrumentality of one or

17 more States or political subdivisions, or

18 ‘‘(2) an organization exempt from tax under

19 section 501(a).

20 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—The amount of

21 any deduction under this subtitle for any tax imposed by

22 subchapter B of chapter 31 or part III of subchapter A

23 of chapter 32 for any taxable year shall be reduced (but

24 not below zero) by the amount of the credit determined

25 under this subsection for such taxable year.’’.
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1 (b) CREDIT MADE PART OF GENERAL BUSINESS

2 CREDIT.—Subsection (b) of section 38 of the Internal

3 Revenue Code of 1986 (relating to general business credit)

4 is amended by striking ‘‘plus’’ at the end of paragraph

5 (12), by striking the period at the end of paragraph (13)

6 and inserting ‘‘, plus’’, and by adding at the end the fol7 lowing new paragraph:

8 ‘‘(14) the commercial power takeoff vehicles

9 credit under section 45E(a).’’.

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

11 for subpart D of part IV of subchapter A of chapter 1

12 of the Internal Revenue Code of 1986 is amended by add13 ing at the end the following new item:

‘‘Sec. 45E. Commercial power takeoff vehicles credit.’’.

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

15 this section shall apply to taxable years ending after De16 cember 31, 2000.

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