I 
109TH CONGRESS 
1ST SESSION H. R. 3301 
To amend the Internal Revenue Code of 1986 to allow an investment tax 
credit for the purchase of trucks with new diesel engine technologies, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 14, 2005 
Mr. HAYWORTH 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 an 
investment tax credit for the purchase of trucks with 
new diesel engine technologies, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. INVESTMENT CREDIT FOR TRUCKS WITH NEW 
DIESEL TECHNOLOGY. 
(a) IN GENERAL.— 
(1) ALLOWANCE
OF
CREDIT.—Subpart E of 
part IV of subchapter A of chapter 1 of the Internal 
Revenue Code of 1986 is amended by inserting after 
section 48 the following new section:
‘‘SEC. 48A. NEW DIESEL TECHNOLOGY CREDIT. 
‘‘(a) GENERAL RULE.—For purposes of section 46, 
the new diesel technology credit for any taxable year is 
5 percent of the cost of any qualified truck which is placed 
in service on or after January 1, 2007, and before Janu-
ary 1, 2008. 
‘‘(b) QUALIFIED TRUCK.—For purposes of this sec-
tion, the term ‘qualified truck’ means any motor vehicle 
(as defined in section 30(c)(2)) which— 
‘‘(1) is first placed in service on or after Janu-
ary 1, 2007, 
‘‘(2) is propelled by diesel fuel, 
‘‘(3) has a gross vehicle weight rating of more 
than 26,000 pounds, and 
‘‘(4) complies with the regulations of the Envi-
ronmental Protection Agency with respect to diesel 
emissions for model year 2007 and later.’’. 
(2) CREDIT TREATED AS PART OF INVESTMENT 
CREDIT.—Section 46 of the Internal Revenue Code 
of 1986 is amended by striking ‘‘and’’ at the end of 
paragraph (1), by striking the period at the end of 
paragraph (2) and inserting ‘‘, and’’, and by adding 
at the end the following new paragraph: 
‘‘(3) the new diesel technology credit.’’. 
(3) CONFORMING AMENDMENTS.—
(A) Section 49(a)(1)(C) of such Code is 
amended by striking ‘‘and’’ at the end of clause 
(ii), by striking the period at the end of clause 
(iii) and inserting ‘‘, and’’, and by adding at the 
end the following new clause: 
‘‘(iv) the basis of any qualified 
truck.’’. 
(B) The table of sections for subpart E of 
part IV of subchapter A of chapter 1 of such 
Code is amended by inserting after the item re-
lating to section 48 the following new item: 
‘‘Sec. 48A. New diesel technology credit.’’. 
(b) CREDIT ALLOWED AGAINST AMT.— 
(1) IN GENERAL.—Subsection (c) of section 38 
of the Internal Revenue Code of 1986 is amended by 
redesignating paragraph (5) as paragraph (6) and 
by inserting after paragraph (4) the following new 
paragraph: 
‘‘(5) SPECIAL RULES FOR NEW DIESEL TECH-
NOLOGY CREDIT.— 
‘‘(A) IN GENERAL.—In the case of the new 
diesel technology credit— 
‘‘(i) this section and section 39 shall 
be applied separately with respect to such 
credit, and
‘‘(ii) in applying paragraph (1) to 
such credit— 
‘‘(I) the tentative minimum tax 
shall be treated as being zero, and 
‘‘(II) the limitation under para-
graph (1) (as modified by subclause 
(I)) shall be reduced by the credit al-
lowed under subsection (a) for the 
taxable year (other than the new die-
sel technology credit). 
‘‘(B) NEW
DIESEL
TECHNOLOGY
CRED-
IT.—For purposes of this subsection, the term 
‘new diesel technology credit’ means the portion 
of the investment credit under section 46 deter-
mined under section 48A.’’. 
(2) CONFORMING
AMENDMENTS.—Paragraphs 
(2)(A)(ii)(II), (3)(A)(ii)(II), and (4)(A)(ii)(II) of 
section 38(c) of such Code are each amended by in-
serting ‘‘or the new diesel technology credit’’ after 
‘‘the specified credits’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service on 
or after January 1, 2007, in taxable years ending after 
such date, under rules similar to the rules of section 48(m) 
of the Internal Revenue Code of 1986 (as in effect on the
day before the date of the enactment of the Revenue Rec-
onciliation Act of 1990). 
SEC. 2. ELECTION TO EXPENSE QUALIFIED TRUCKS. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 179B the following new section: 
‘‘SEC. 179C. ELECTION TO EXPENSE NEW DIESEL TECH-
NOLOGY TRUCKS. 
‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 
elect to treat the cost of any qualified truck (as defined 
in section 48A) as an expense which is not chargeable to 
a capital account. Any cost so treated shall be allowed as 
a deduction for the taxable year in which the qualified 
truck is placed in service. 
‘‘(b) ELECTION.— 
‘‘(1) IN GENERAL.—An election under this sec-
tion for any taxable year shall be made on the tax-
payer’s return of the tax imposed by this chapter for 
the taxable year. Such election shall be made in such 
manner as the Secretary may by regulations pre-
scribe. 
‘‘(2) ELECTION
IRREVOCABLE.—Any election 
made under this section may not be revoked except 
with the consent of the Secretary.
‘‘(c) TERMINATION.—This section shall not apply to 
property placed in service after December 31, 2007.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for part VI of subchapter B of chapter 1 of the Inter-
nal Revenue Code of 1986 is amended by inserting after 
the item relating to section 179B the following new item: 
‘‘Sec. 179C. Election to expense new diesel technology trucks.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service on 
or after January 1, 2007. 
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