I 
109TH CONGRESS 
1ST SESSION H. R. 2102 
To amend the Internal Revenue Code of 1986 to provide a credit against 
the income tax for expenses incurred in restoring and protecting coastal 
lands. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 4, 2005 
Mr. MELANCON (for himself, Mr. BAKER, Mr. MCCRERY, Mr. JEFFERSON, 
Mr. ALEXANDER, Mr. JINDAL, and Mr. BOUSTANY) 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 provide 
a credit against the income tax for expenses incurred 
in restoring and protecting coastal lands. 
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 ‘‘Coastal Restoration 
Tax Credit Act of 2005’’. 
SEC. 2. CREDIT FOR EXPENSES INCURRED IN RESTORING 
AND PROTECTING COASTAL LANDS. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 30B. CREDIT FOR EXPENSES INCURRED IN RESTOR-
ING AND PROTECTING COASTAL LANDS. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the qualified ex-
penditures of the taxpayer for the taxable year. 
‘‘(b) LIMITATIONS.— 
‘‘(1) MAXIMUM
CREDIT.—The credit allowed 
under subsection (a) for a taxable year shall not ex-
ceed $2,000,000. 
‘‘(2) LIMITATION
BASED
ON
AMOUNT
OF 
TAX.—The credit allowed under subsection (a) for 
the taxable year shall not exceed the excess of— 
‘‘(A) the sum of the regular tax liability 
(as defined in section 26(b)) plus the tax im-
posed by section 55, over 
‘‘(B) the sum of the credits allowable 
under subpart A and sections 27 and 30A for 
the taxable year. 
‘‘(c) QUALIFIED EXPENDITURES.—For purposes of 
this section—
‘‘(1) IN GENERAL.—The term ‘qualified expend-
itures’ means amounts paid or incurred by the tax-
payer for an approved project. 
‘‘(2) APPROVED PROJECT.—The term ‘approved 
project’ means any project approved by the Natural 
Resources Conservation Service to restore or protect 
coastal lands located in the United States. 
‘‘(d) CARRYOVERS ALLOWED.— 
‘‘(1) IN GENERAL.—If the credit amount allow-
able under subsection (a) for a taxable year exceeds 
the amount of the limitation under subsection (c) for 
such taxable year (referred to as the ‘unused credit 
year’ in this paragraph), such excess shall be allowed 
as a credit carryforward for each of the taxable 
years following the unused credit year or as a credit 
carryback for each of the taxable years preceeding 
the unused credit year. 
‘‘(2) RULES.—For purposes of paragraph (1), 
rules similar to the rules of section 39 shall apply, 
except that— 
‘‘(A) subsection (a)(1) shall be applied— 
‘‘(i) by substituting ‘3 taxable years’ 
for ‘1 taxable years’ in subparagraph (A) 
thereof, and
‘‘(ii) by substituting ‘5 taxable years’ 
for ‘20 taxable years’ in subparagraph (B) 
thereof, and 
‘‘(B) subsection (a)(2) shall be applied— 
‘‘(i) by substituting ‘8 taxable years’ 
for ‘21 taxable years’ in subparagraph (A) 
thereof, and 
‘‘(ii) by substituting ‘7 taxable years’ 
for ‘20 taxable years’ in subparagraph (B). 
‘‘(e) SPECIAL RULES.— 
‘‘(1) BASIS
REDUCTION.—The basis of any 
property for which a credit is allowable under sub-
section (a) shall be reduced by the amount of such 
credit (determined without regard to subsection 
(b)(2)). 
‘‘(2) NO
DOUBLE
BENEFIT.—The amount of 
any deduction or credit allowable under this chapter 
(other than the credit allowable under subsection 
(a)), shall be reduced by the amount of credit al-
lowed under subsection (a) (determined without re-
gard to subsection (b)(2)) for the taxable year. 
‘‘(3) 
REDUCTION
FOR
ASSISTANCE.—The 
amount taken into account under subsection (a) with 
respect to any project shall be reduced by the 
amount of any Federal, State, or local grant or
other assistance received by the taxpayer during 
such taxable year or any prior taxable year which 
was used to make qualified expenditures and which 
was not included in the gross income of such tax-
payer.’’. 
(b) BASIS ADJUSTMENT.—Section 1016(a) of such 
Code is amended by striking ‘‘and’’ at the end of para-
graph (30), by striking the period at the end of paragraph 
(31) and inserting ‘‘, and’’, and by adding at the end the 
following new paragraph: 
‘‘(32) to the extent provided in section 
30B(e)(1).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 30A the following new item: 
‘‘Sec. 30B. Credit for expenses incurred in restoring and protecting coastal 
lands.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2004. 
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