I 

108TH CONGRESS 

2D SESSION H. R. 4931

To amend the Internal Revenue Code of 1986 to encourage and accelerate 

the nationwide production, retail sale, and consumer use of new commercial and consumer motor vehicles with intelligent vehicle technology systems. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 22, 2004

Mr. CRANE (for himself, Mr. ROGERS of Michigan, and Mr. LEVIN) 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 encourage 

and accelerate the nationwide production, retail sale, and 

consumer use of new commercial and consumer motor 

vehicles with intelligent vehicle technology systems.

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 ‘‘Intelligent Vehicle 

5 Highway Safety Act of 2004’’. 
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1 SEC. 2. DEDUCTION FOR INTELLIGENT VEHICLE TECH2 NOLOGY SYSTEMS. 

3 (a) IN GENERAL.—Part VI of subchapter B of chap4 ter 1 of the Internal Revenue Code of 1986 (relating to 

5 itemized deductions for individuals and corporations) is 

6 amended by adding at the end the following new section: 

7 ‘‘SEC. 199. INTELLIGENT VEHICLE SYSTEMS PROPERTY. 

8 ‘‘(a) DEDUCTION ALLOWED.—There shall be allowed 

9 as a deduction for the taxable year an amount equal to 

10 the amount paid or incurred by the taxpayer for qualified 

11 intelligent vehicle systems property. The deduction under 

12 the preceding sentence with respect to any property shall 

13 be allowed for the taxable year in which such property is 

14 placed in service. 

15 ‘‘(b) LIMITATION.—

16 ‘‘(1) IN GENERAL.—The amount allowed as a 

17 deduction under subsection (a) with respect to any 

18 motor vehicle shall not exceed $1,000. 

19 ‘‘(2) PHASEOUT.—In the case of any qualified 

20 intelligent vehicle systems property placed in service 

21 after December 31, 2007, the limit otherwise appli22 cable under paragraph (1) shall be reduced by—

23 ‘‘(A) 25 percent in the case of property 

24 placed in service in calendar year 2008, 

25 ‘‘(B) 50 percent in the case of property 

26 placed in service in calendar year 2009, and 
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1 ‘‘(C) 75 percent in the case of property 

2 placed in service in calendar year 2010. 

3 ‘‘(c) QUALIFIED INTELLIGENT VEHICLE SYSTEMS

4 PROPERTY.—For purposes of this section—

5 ‘‘(1) IN GENERAL.—The term ‘qualified intel6 ligent vehicle systems property’ means any device de7 scribed in paragraph (2) if such device—

8 ‘‘(A) is an integrated, in-vehicle electronic 

9 device installed in a motor vehicle at the point 

10 of manufacture by the original equipment man11 ufacturer, or as an aftermarket installation, and 

12 ‘‘(B) enhances the safety or security of the 

13 driver, passenger, or load. 

14 ‘‘(2) DEVICES DESCRIBED.—A device described 

15 in this paragraph is a device which—

16 ‘‘(A) is a device that warns or informs a 

17 driver of driving conditions or location, such as 

18 collision warning systems, automated collision 

19 notification systems, vehicle rollover warning 

20 systems, lane departure warning systems, and 

21 fatigue management systems, 

22 ‘‘(B) is a positional communications and 

23 tracking device, 
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1 ‘‘(C) assists in verification of driver iden2 tity, such as biometric identifiers and electronic 

3 ignition locks, 

4 ‘‘(D) is an electronic seal, 

5 ‘‘(E) is a roll stability control system, or 

6 ‘‘(F) actively monitors and adjusts driver 

7 workload. 

8 ‘‘(3) MOTOR VEHICLE.—The term ‘motor vehi9 cle’ means any vehicle which is manufactured pri10 marily for use on public streets, roads, and highways 

11 (not including a vehicle operated exclusively on a rail 

12 or rails) and which has at least 4 wheels. 

13 ‘‘(d) SPECIAL RULES.—

14 ‘‘(1) PROPERTY USED OUTSIDE UNITED

15 STATES, ETC., NOT QUALIFIED.—No deduction shall 

16 be allowed under subsection (a) with respect to any 

17 property referred to in section 50(b) or with respect 

18 to the portion of the cost of any property taken into 

19 account under section 179. 

20 ‘‘(2) BASIS REDUCTION.—

21 ‘‘(A) IN GENERAL.—For purposes of this 

22 title, the basis of any property shall be reduced 

23 by the portion of the cost of such property 

24 taken into account under subsection (a). 
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1 ‘‘(B) ORDINARY INCOME RECAPTURE.—

2 For purposes of section 1245, the amount of 

3 the deduction allowable under subsection (a) 

4 with respect to any property which is of a char5 acter subject to the allowance for depreciation 

6 shall be treated as a deduction allowed for de7 preciation under section 167. 

8 ‘‘(e) SUPPORTING DOCUMENTATION.—No deduction 

9 shall be allowed under subsection (a) unless the taxpayer 

10 receives, at the time of purchase of the qualified intelligent 

11 vehicle systems property, such documentation as the Sec12 retary may require. Such documentation shall identify the 

13 type of each intelligent vehicle systems property installed 

14 on the motor vehicle, retail cost of each such system, the 

15 purchase date of the motor vehicle containing such sys16 tems (or the installation date of such systems in the case 

17 of installation after the date of the first retail sale (as 

18 defined in section 4052(a)). 

19 ‘‘(f) TERMINATION.—This section shall not apply to 

20 any property placed in service after December 31, 2010.’’. 

21 (b) DEDUCTION ALLOWED WHETHER OR NOT INDI22 VIDUAL ITEMIZES OTHER DEDUCTIONS.—Subsection (a) 

23 of section 62 of such Code is amended by inserting after 

24 paragraph (19) the following new paragraph: 
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1 ‘‘(20) INTELLIGENT VEHICLE SYSTEMS PROP2 ERTY.—The deduction allowed by section 199.’’. 

3 (c) CONFORMING AMENDMENTS.—

4 (1) Subsection (a) of section 1016 of such Code 

5 is amended by striking ‘‘and’’ at the end of para6 graph (27), by striking the period at the end of 

7 paragraph (28) and inserting ‘‘; and’’, and by add8 ing at the end the following new paragraph: 

9 ‘‘(29) to the extent provided in section 

10 199(d)(2).’’. 

11 (2) Subparagraph (C) of section 1245(a)(2) of 

12 such Code is amended by striking ‘‘or 193’’ and in13 serting ‘‘193, or 199’’. 

14 (d) CLERICAL AMENDMENT.—The table of sections 

15 for part VI of subchapter B of chapter 1 of such Code 

16 is amended by adding at the end the following new item:

‘‘Sec. 199. Intelligent vehicle systems property.’’.

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

18 this section shall apply to taxable years beginning after 

19 December 31, 2004. 

20 SEC. 3. INTELLIGENT VEHICLE SYSTEMS PROPERTY EX21 CEPTION TO TAX ON HEAVY TRUCKS AND 

22 TRAILERS SOLD AT RETAIL. 

23 (a) IN GENERAL.—Section 4051 of the Internal Rev24 enue Code of 1986 (relating to imposition of tax on heavy 

25 trucks and trailers sold at retail) is amended by redesig-
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1 nating subsection (c) as subsection (d) and by inserting 

2 after subsection (b) the following new subsection: 

3 ‘‘(c) EXCLUSION FOR INTELLIGENT VEHICLE SYS4 TEMS PROPERTY.—

5 ‘‘(1) IN GENERAL.—The tax imposed by sub6 sections (a) and (b) shall not apply to any article 

7 which is qualified intelligent vehicle systems prop8 erty. 

9 ‘‘(2) LIMITATION.—The amount excluded by 

10 paragraph (1) shall not exceed $5,000 with respect 

11 to any article which is a chassis, body, trailer, or 

12 tractor described in a subparagraph of paragraph 

13 (1). 

14 ‘‘(3) QUALIFIED INTELLIGENT VEHICLE SYS15 TEMS PROPERTY.—The term ‘qualified intelligent ve16 hicle system property’ shall have the meaning given 

17 such term by section 199(c).’’. 

18 (b) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to articles sold after December 31, 

20 2004.

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