I
104TH CONGRESS
1ST SESSION
H. R. 2054
To amend the Internal Revenue Code of 1986 to apply the rehabilitation
credit to historic ships, aircraft, and other vessels.
IN THE HOUSE OF REPRESENTATIVES
JULY 18, 1995
Mr. DICKS (for himself and Mr. MCDERMOTT) 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 apply
the rehabilitation credit to historic ships, aircraft, and
other vessels.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. APPLICATION OF REHABILITATION CREDIT TO
HISTORIC SHIPS AND AIRCRAFT.
(a) IN GENERAL.—Subsection (a) of section 47 of the
Internal Revenue Code of 1986 (relating to rehabilitation
credit) is amended—
(1) in paragraph (1) by striking ‘‘and’’ at the
end,
(2) in paragraph (2), by striking the period at
the end and inserting ‘‘, and’’, and
(3) by adding at the end the following new
paragraph:
‘‘(3) 20 percent of the vessel rehabilitation ex-
penditures with respect to any certified historic ves-
sel.’’
(b) CERTIFIED HISTORIC VESSELS.—Section 47 of
such Code is amended by adding at the end the following
new subsection:
‘‘(e) DEFINITIONS AND SPECIAL RULES FOR TREAT-
MENT OF CERTIFIED HISTORIC VESSELS.—
‘‘(1) CERTIFIED HISTORIC VESSELS.—For pur-
poses of this section, the term ‘certified historic ves-
sel’ means—
‘‘(A) any ship, aircraft, or other vessel
which is listed in the National Register, and
‘‘(B) any facility (including a pier, hangar,
or display facility) related to such ship, aircraft,
or other vessel, but only if substantially all of
the use of such facility is in connection with
such ship, aircraft, or vessel.
Such term does not include any building (or any
structural component of a building) which is a cer-
tified historic structure.
‘‘(2) 
VESSEL
REHABILITATION
EXPENDI-
TURES.—
‘‘(A) IN GENERAL.—For purposes of this
section, the term ‘vessel rehabilitation expendi-
ture’ includes any amount properly chargeable
to capital account—
‘‘(i) for property for which deprecia-
tion is allowable under section 168, and
‘‘(ii) in connection with the substan-
tial rehabilitation of such certified historic
vessel.
For purposes of determining substantial reha-
bilitation under clause (ii), rules similar to the
rules of subsection (c)(1)(C) shall apply.
‘‘(B) CERTAIN
EXPENDITURES
NOT
IN-
CLUDED.—Rules similar to the rules of sub-
section (c)(2)(B) shall apply for purposes of
this paragraph.
‘‘(C) ACQUISITION, CONSTRUCTION, AND
ENLARGEMENT OF CERTAIN NECESSARY FACILI-
TIES.—Subparagraph (B) shall not apply, with
respect to clauses (ii) and (iii) of subsection
(c)(2)(B), to acquisition, construction, or en-
largement of any facility referred to in para-
graph (1)(B) if—
‘‘(i) such facility (or the enlargement
of such facility) is necessary for access to
or housing of such certified historic vessel,
and
‘‘(ii) no other suitable facility to pro-
vide access to or housing of such certified
historic vessel is reasonably available for
use by such historic vessel.
‘‘(3) WHEN EXPENDITURES TAKEN INTO AC-
COUNT.—For purposes of this subsection, rules simi-
lar to the rules of subsections (b) and (d) shall
apply.’’
(c) EFFECTIVE DATE.—The amendments made by
this Act shall apply to amounts incurred after December
31, 1994, for taxable years ending after such date.
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