I
103D CONGRESS
1ST SESSION
H. R. 2024
To clarify the tax treatment of intermodal containers.
IN THE HOUSE OF REPRESENTATIVES
MAY 6, 1993
Mr. MATSUI (for himself and Mr. THOMAS of California) introduced the
following bill; which was referred to the Committee on Ways and Means
A BILL
To clarify the tax treatment of intermodal containers.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. TREATMENT OF CERTAIN CARGO CONTAINERS.
(a) GENERAL RULE.—A qualified intermodal cargo
container shall be treated as property described in section
48(a)(2)(B)(v) of the Internal Revenue Code of 1986 (as
in effect on the day before the date of enactment of the
Revenue Reconciliation Act of 1990).
(b) QUALIFIED INTERMODAL CARGO CONTAINER.—
(1) GENERAL RULE.—For purposes of this sec-
tion, the term ‘‘qualified intermodal cargo con-
tainer’’ means any intermodal cargo container of a
United States person which, after being placed in
service, at all times during the taxable year either—
(A) is subject to a qualifying lease, or
(B) is being—
(i) held for lease,
(ii) moved for purposes of leasing or
being available for lease, or
(iii) maintained or repaired for subse-
quent lease,
by the taxpayer, a lessee or agent of the tax-
payer or any other person.
(2) DEFINITIONS.—For purposes of this sub-
section—
(A) 
QUALIFYING
LEASE.—The 
term
‘‘qualifying lease’’ means—
(i) any lease to a container user that
has one or more trade routes that contact
the United States, or
(ii) any short-term lease to a con-
tainer user.
(B) CONTAINER
USER.—The term ‘‘con-
tainer user’’ means—
(i) a person that is in the business of
using intermodal cargo containers to ship
or transport cargo for other persons, or
(ii) with respect to an intermodal
cargo container, a person that uses the
container to ship or transport its own
cargo.
(C) U.S. TRADE
ROUTES.—A container
user shall be deemed to have one or more trade
routes that contact the United States if at any
time during the taxable year such person—
(i) owns, operates, or charters any
vessel that receives or delivers any inter-
modal cargo container in the United
States, or
(ii) uses any intermodal cargo con-
tainer to ship cargo to or from the United
States.
(D) 
SHORT-TERM
LEASE.—The 
term
‘‘short-term lease’’ means—
(i) any lease the stated term of which
is not more than 50 percent of the class
life 
(within 
the 
meaning 
of 
section
168(i)(1) of the Internal Revenue Code of
1986) of the container, and
(ii) any lease under a lease agreement
under which the lessee is not required to
use or hold the container for a specified
term.
(E) LEASE.—The term ‘‘lease’’ means
lease or sublease.
SEC. 2. NO INFERENCE.
No inference shall be drawn from this Act as to the
application of section 48(a)(2)(B)(v) of the Internal Reve-
nue Code of 1986 (as in effect on the day before the date
of enactment of the Revenue Reconciliation Act of 1990)
or section 168(g)(4)(E) of the Internal Revenue Code of
1986 to containers that are not qualified intermodal cargo
containers or to containers placed in service after Decem-
ber 31, 1989.
SEC. 3. REVOCATION OF PRIOR ELECTION.
(a) GENERAL RULE.—Any election made under In-
ternal Revenue Service Revenue Procedure 90–10 prior to
the date of enactment of this Act may be revoked without
the consent of the Secretary of the Treasury or his dele-
gate. An election revoked under this section shall be treat-
ed as never having been made.
(b) TIME AND MANNER OF REVOCATION.—Any rev-
ocation under subsection (a) shall be made within 180
days after the date of enactment of this Act by filing with
the Secretary of the Treasury or his delegate—
(1) a statement describing the election being re-
voked and indicating that the election is revoked,
and
(2) an amended return consistent with such
revocation.
SEC. 4. EFFECTIVE DATE.
(a) GENERAL RULE.—Section 1 shall apply to all
intermodal cargo containers placed in service before Janu-
ary 1, 1990.
(b) REVOCATION
OF ELECTION.—Section 3 shall
take effect on the date of the enactment of this Act.
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