To amend the Internal Revenue Code of 1986 to provide tax relief to promote investments in mine safety.

SECTION 1. PARTIAL EXPENSING FOR ADVANCED MINE SAFETY EQUIPMENT.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to itemized deductions for 
individuals and corporations) is amended by inserting after section 
179D the following new section:

``SEC. 179E. ELECTION TO EXPENSE ADVANCED MINE SAFETY EQUIPMENT.

    ``(a) Treatment as Expenses.--A taxpayer may elect to treat 50 
percent of the cost of any qualified advanced mine safety equipment 
property as an expense which is not chargeable to capital account. Any 
cost so treated shall be allowed as a deduction for the taxable year in 
which the qualified advanced mine safety equipment property is placed 
in service.
    ``(b) Election.--
            ``(1) In general.--An election under this section for any 
        taxable year shall be made on the taxpayer's return of the tax 
        imposed by this chapter for the taxable year. Such election 
        shall specify the advanced mine safety equipment property to 
        which the election applies and shall be made in such manner as 
        the Secretary may by regulations prescribe.
            ``(2) Election irrevocable.--Any election made under this 
        section may not be revoked except with the consent of the 
        Secretary.
    ``(c) Qualified Advanced Mine Safety Equipment Property.--For 
purposes of this section, the term `qualified advanced mine safety 
equipment property' means any advanced mine safety equipment property 
for use in any underground mine located in the United States--
            ``(1) the original use of which commences with the 
        taxpayer, and
            ``(2) which is placed in service by the taxpayer after the 
        date of the enactment of this section.
    ``(d) Advanced Mine Safety Equipment Property.--For purposes of 
this section, the term `advanced mine safety equipment property' means 
any of the following:
            ``(1) Emergency communication technology or device which is 
        used to allow a miner to maintain constant communication with 
        an individual who is not in the mine.
            ``(2) Electronic identification and location device which 
        allows an individual who is not in the mine to track at all 
        times the movements and location of miners working in or at the 
        mine.
            ``(3) Emergency oxygen-generating, self-rescue device which 
        provides oxygen for at least 90 minutes.
            ``(4) Pre-positioned supplies of oxygen which (in 
        combination with self-rescue devices) can be used to provide 
        each miner on a shift, in the event of an accident or other 
        event which traps the miner in the mine or otherwise 
        necessitates the use of such a self-rescue device, the ability 
        to survive for at least 48 hours.
            ``(5) Comprehensive atmospheric monitoring system which 
        monitors the levels of carbon monoxide, methane, and oxygen 
        that are present in all areas of the mine and which can detect 
        smoke in the case of a fire in a mine.
    ``(e) Special Rules.--
            ``(1) Coordination with section 179.--No expenditures shall 
        be taken into account under subsection (a) with respect to the 
        portion of the cost of any property specified in an election 
        under section 179.
            ``(2) Basis reduction.--For purposes of this title, the 
        basis of any property shall be reduced by the portion of the 
        cost of such property taken into account under subsection (a).
    ``(f) Termination.--This section shall not apply to property placed 
in service after the date which is 3 years after the date of the 
enactment of this section.''.
    (b) Alternative Election to Increase Minimum Tax Limitation.--
Section 53 of such Code (relating to credit for prior year minimum tax 
liability) is amended by adding at the end the following new 
subsection:
    ``(e) Temporary Election to Increase Minimum Tax Limitation for 
Mine Safety Investments.--
            ``(1) In general.--A taxpayer may elect to increase the 
        limitation under subsection (c) for a taxable year by the cost 
        of any qualified advanced mine safety equipment property, as 
        defined for purposes of section 179E, placed into service 
        during such taxable year.
            ``(2) Election.--
                    ``(A) In general.--An election under this 
                subsection for any taxable year shall be made on the 
                taxpayer's return of the tax imposed by this chapter 
                for the taxable year. Such election shall specify the 
                advanced mine safety equipment property to which the 
                election applies and shall be made in such manner as 
                the Secretary may by regulations prescribe.
                    ``(B) Election irrevocable.--Any election made 
                under this subsection may not be revoked except with 
                the consent of the Secretary.
                    ``(C) No double benefit.--A taxpayer making an 
                election under this subsection for any taxable year may 
                not make an election for such year under section 179E.
            ``(3) Credit refundable.--The aggregate increase in the 
        credit allowed by this section for any taxable year by reason 
        of this subsection shall for purposes of this title (other than 
        subsection (b)(2) of this section) be treated as a credit 
        allowed to the taxpayer under subpart C.
            ``(4) Termination.--The election made under this subsection 
        shall not apply with respect to property placed in service 
        after the date which is 3 years after the date of the enactment 
        of this section.''.
    (c) Conforming Amendments.--
            (1) Section 263(a)(1) of such Code is amended by striking 
        ``or'' at the end of subparagraph (J), by striking the period 
        at the end of subparagraph (K) and inserting ``, or'', and by 
        inserting after subparagraph (K) the following new 
        subparagraph:
                    ``(L) expenditures for which a deduction is allowed 
                under section 179E.''.
            (2) Section 312(k)(3)(B) of such Code is amended by 
        striking ``or 179D'' each place it appears in the heading and 
        text thereof and inserting ``179D, or 179E''.
            (3) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (36), by striking the period at 
        the end of paragraph (37) and inserting ``, and'', and by 
        adding at the end the following new paragraph:
            ``(38) to the extent provided in section 179E(e)(2).''.
            (4) Section 1245(a)(2)(C) of such Code is amended by 
        inserting ``179E,'' after ``179D,''.
            (5) The table of sections for part VI of subchapter B of 
        chapter 1 of such Code is amended by inserting after the item 
        relating to section 179D the following new item:

``Sec. 179E. Election to expense advanced mine safety equipment''.
    (d) Effective Date.--The amendments made by this section shall 
apply to costs paid or incurred after the date of the enactment of this 
Act.

SEC. 2. MINE RESCUE TEAM TRAINING TAX CREDIT.

    (a) In General.--Subpart D of part IV of subchapter 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. 45N. MINE RESCUE TEAM TRAINING CREDIT.

    ``(a) Amount of Credit.--For purposes of section 38, the mine 
rescue team training credit determined under this section with respect 
to any eligible employer for any taxable year is an amount equal to the 
lesser of--
            ``(1) 20 percent of the amount paid or incurred by the 
        taxpayer during the taxable year with respect to the training 
        program costs of each qualified mine rescue team employee 
        (including wages of such employee while attending such 
        program), or
            ``(2) $10,000 per qualified mine rescue team employee.
    ``(b) Qualified Mine Rescue Team Employee.--For purposes of this 
section, the term `qualified mine rescue team employee' means with 
respect to any taxable year any full-time employee of the taxpayer who 
is--
            ``(1) a miner eligible for more than 6 months of such 
        taxable year to serve as a mine rescue team member as a result 
        of completing, at a minimum, an initial 20-hour course of 
        instruction as prescribed by the Mine Safety and Health 
        Administration's Office of Educational Policy and Development, 
        or
            ``(2) a miner eligible for more than 6 months of such 
        taxable year to serve as a mine rescue team member by virtue of 
        receiving at least 40 hours of refresher training in such 
        instruction.
    ``(c) Eligible Employer.--For purposes of this section, the term 
`eligible employer' means any taxpayer which employs individuals as 
miners in underground mines in the United States.
    ``(d) Wages.--For purposes of this section, the term `wages' has 
the meaning given to such term by subsection (b) of section 3306 
(determined without regard to any dollar limitation contained in such 
section).
    ``(e) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2008.''.
    (b) Credit Made Part of General Business Credit.--Section 38(b) of 
such Code is amended by striking ``and'' at the end of paragraph (29), 
by striking the period at the end of paragraph (30) and inserting ``, 
and'', and by adding at the end the following new paragraph:
            ``(31) the mine rescue team training credit determined 
        under section 45N(a).''.
    (c) Credit Allowed Against Minimum Tax.--Subparagraph (B) of 
section 38(c)(4) of such Code (relating to specified credits) is 
amended by redesignating clause (ii) as clause (iii) and inserting 
after clause (i) the following new clause:
                            ``(ii) for taxable years beginning after 
                        December 31, 2005, and before January 1, 2009, 
                        the mine rescue team training credit determined 
                        under section 45N(a).''.
    (d) No Double Benefit.--Section 280C of such Code is amended by 
adding at the end the following new subsection:
    ``(e) Mine Rescue Team Training Credit.--No deduction shall be 
allowed for that portion of the expenses otherwise allowable as a 
deduction for the taxable year which is equal to the amount of the 
credit determined for the taxable year under section 45N(a).''.
    (e) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 45N. Mine rescue team training credit''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

Summary: Amends the Internal Revenue Code to allow a taxpayer election to expense (i.e., deduct in the current taxable year) 50% of the cost of qualified advanced mine safety equipment property. Defines such property to include: (1) an emergency communication technology or device for constant communication with individuals outside the mine; (2) an electronic identification and location device; (3) an emergency oxygen-generating device; (4) pre-positioned oxygen supplies; and (5) a comprehensive atmospheric monitoring system to monitor levels of carbon monoxide and other gases present in a mine.

Allows employers a business-related tax credit for the lesser of 20% of the training costs of their qualified mine rescue team employees or $10,000 for each such employee. Defines such an employee as one who receives a certain level of mine safety training as prescribed by the Mine Safety and Health Administration. Terminates such credit after 2008.