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S 885 IS
111th CONGRESS
1st Session
S. 885
To amend the Internal Revenue Code of 1986 to provide special depreciation and amortization rules for highway and related property subject to long-term leases, and for other purposes.
IN THE SENATE OF THE UNITED STATES
April 23, 2009
Mr. BINGAMAN (for himself and Mr. GRASSLEY) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to provide special depreciation and amortization rules for highway and related property subject to long-term leases, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
SEC. 2. DEPRECIATION AND AMORTIZATION RULES FOR HIGHWAY AND RELATED PROPERTY SUBJECT TO LONG-TERM LEASES.
(a) Accelerated Cost Recovery-
(1) IN GENERAL- Section 168(g)(1) of the Internal Revenue Code of 1986 (relating to alternative depreciation system for certain property) is amended by striking ‘and’ at the end of subparagraph (D), by redesignating subparagraph (E) as subparagraph (F), and by inserting after subparagraph (D) the following new subparagraph:
‘(E) any applicable leased highway property,’.
(2) RECOVERY PERIOD- The table contained in subparagraph (C) of section 168(g)(2) of such Code is amended by redesignating clause (iv) as clause (v) and by inserting after clause (iii) the following new clause:
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‘(iv) Applicable leased highway property 45 years.’.
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(3) APPLICABLE LEASED HIGHWAY PROPERTY DEFINED-
(A) IN GENERAL- Section 168(g) of such Code is amended by redesignating paragraph (7) as paragraph (8) and by inserting after paragraph (6) the following new paragraph:
‘(7) APPLICABLE LEASED HIGHWAY PROPERTY- For purposes of paragraph (1)(E)--
‘(A) IN GENERAL- The term ‘applicable leased highway property’ means property to which this section otherwise applies which--
‘(i) is subject to an applicable lease, and
‘(ii) is placed in service before the date of such lease.
‘(B) APPLICABLE LEASE- The term ‘applicable lease’ means a lease or other arrangement--
‘(i) which is between the taxpayer and a State or political subdivision thereof, or any agency or instrumentality of either, and
‘(ii) under which the taxpayer--
‘(I) leases a highway and associated improvements,
‘(II) receives a right-of-way on the public lands underlying such highway and improvements, and
‘(III) receives a grant of a franchise or other intangible right permitting the taxpayer to receive funds relating to the operation of such highway.’.
(B) CONFORMING AMENDMENT- Subparagraph (F) of section 168(g)(1) (as redesignated by subsection (a)(1)) is amended by striking ‘paragraph (7)’ and inserting ‘paragraph (8)’.
(b) Amortization of Intangibles- Section 197(f) of the Internal Revenue Code of 1986 (relating to special rules for amortization of intangibles) is amended by adding at the end the following new paragraph:
‘(11) INTANGIBLES RELATING TO APPLICABLE LEASED HIGHWAY PROPERTY- In the case of any section 197 intangible property which is subject to an applicable lease (as defined in section 168(g)(8)(B)), the amortization period under this section shall not be less than the term of the applicable lease. For purposes of the preceding sentence, rules similar to the rules of section 168(i)(3)(A) shall apply in determining the term of the applicable lease.’.
(c) No Private Activity Bond Financing of Applicable Leases- Section 147(e) of the Internal Revenue Code of 1986 is amended by inserting ‘, or to finance any applicable lease (as defined in section 168(g)(8)(B))’ after ‘premises’.
(d) Effective Date- The amendments made by this section shall apply to leases entered into after the date of the enactment of this Act.
U.S. Congress - Text of S.885 as Introduced in Senate Transportation Access for All Americans Act
