I 
110TH CONGRESS 
1ST SESSION H. R. 1770 
To amend the Internal Revenue Code of 1986 to encourage the use of 
corrosion prevention and mitigation measures in the construction and 
maintenance of business property. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 29, 2007 
Mr. CONAWAY (for himself, Mrs. JONES of Ohio, Mr. CULBERSON, Mr. ROG-
ERS of Michigan, and Mr. BARTLETT of Maryland) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to encourage 
the use of corrosion prevention and mitigation measures 
in the construction and maintenance of business prop-
erty. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Corrosion Prevention 
Act of 2007’’. 
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SEC. 2. CREDIT FOR CORROSION PREVENTION AND MITI-
GATION MEASURES. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business-related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 45O. CORROSION PREVENTION AND MITIGATION 
MEASURES. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
corrosion prevention and mitigation credit determined 
under this section for the taxable year is an amount equal 
to 50 percent of the excess of— 
‘‘(1) qualified corrosion prevention and mitiga-
tion expenditures with respect to qualified property, 
over 
‘‘(2) the amount such expenditures would have 
been, taking into account— 
‘‘(A) amounts paid or incurred to satisfy 
Federal, State, or local requirements, and 
‘‘(B) amounts paid for corrosion preven-
tion practices, as certified by a person certified 
pursuant to subsection (b)(2). 
‘‘(b) QUALIFIED CORROSION PREVENTION AND MITI-
GATION EXPENDITURES.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified corro-
sion prevention and mitigation expenditures’ means 
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amounts paid or incurred by the taxpayer during the 
taxable year for engineering design, materials, and 
application and installation of corrosion prevention 
and mitigation technology. 
‘‘(2) CERTIFICATION MAY BE REQUIRED.—The 
Secretary shall require by regulation that no amount 
be taken into account under paragraph (1) for any 
design, material, application, or installation unless 
such design, material, application, or installation 
meets such certification requirements. Such require-
ments shall provide for accreditation of certifying 
persons by an independent entity with expertise in 
corrosion prevention and mitigation technology. 
‘‘(3) CORROSION PREVENTION AND MITIGATION 
TECHNOLOGY.—Corrosion prevention and mitigation 
technology includes a system comprised of at least 
one of the following: a corrosion-protective coating 
or paint; chemical treatment; corrosion-resistant 
metals; and cathodic protection. The Secretary from 
time to time by regulations or other guidance may 
modify the list contained in the preceding sentence 
to reflect changes in corrosion prevention and miti-
gation technology. 
‘‘(4) QUALIFIED PROPERTY.—The term ‘quali-
fied property’ means property which is— 
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‘‘(A) comprised primarily of a metal sus-
ceptible to corrosion, 
‘‘(B) of a character subject to the allow-
ance for depreciation, 
‘‘(C) originally placed in service or owned 
by the taxpayer, and 
‘‘(D) located in the United States. 
‘‘(c) RECAPTURE OF CREDIT.— 
‘‘(1) IN GENERAL.—If, as of the close of any 
taxable year, there is a recapture event with respect 
to any qualified property for which a credit was al-
lowed under subsection (a), the tax of the taxpayer 
under this chapter for such taxable year shall be in-
creased by an amount equal to the product of— 
‘‘(A) the applicable recapture percentage, 
and 
‘‘(B) the aggregate decrease in the credits 
allowed under section 38 for all prior taxable 
years which would have resulted if the qualified 
corrosion prevention and mitigation expendi-
tures of the taxpayer with respect to such prop-
erty had been zero. 
‘‘(2) APPLICABLE RECAPTURE PERCENTAGE.— 
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‘‘(A) IN GENERAL.—For purposes of this 
subsection, the applicable recapture percentage 
shall be determined from the following table: 
‘‘If the property ceases to be 
The recapture 
qualified property within: 
percentage is: 
(i) One full year after placed in service .............................................
100
(ii) One full year after the close of the period described in clause 
(i) ...................................................................................................
(iii) One full year after the close of the period described in clause 
(ii) ..................................................................................................
(iv) One full year after the close of the period described in clause 
(iii) .................................................................................................
(v) One full year after the close of the period described in clause 
(iv) ..................................................................................................
20. 
‘‘(B) RECAPTURE EVENT DEFINED.—For 
purposes of this subsection, the term ‘recapture 
event’ means— 
‘‘(i) CESSATION
OF
USE.—The ces-
sation of use of the qualified property. 
‘‘(ii) CHANGE IN OWNERSHIP.— 
‘‘(I) IN
GENERAL.—Except as 
provided in subclause (II), the disposi-
tion of a taxpayer’s interest in the 
qualified property with respect to 
which the credit described in sub-
section (a) was allowable. 
‘‘(II) AGREEMENT
TO
ASSUME 
RECAPTURE
LIABILITY.—Subclause 
(I) shall not apply if the person ac-
quiring the qualified property agrees 
in writing to assume the recapture li-
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