HR 1706 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

H. R. 1706CommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide a credit against income tax to facilitate the accelerated development and deployment of advanced safety systems for commercial motor vehicles.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

May 4, 2011CommentsClose CommentsPermalink

Mr. DAVIS of Kentucky (for himself and Mr. THOMPSON of California) introduced the following bill; which was referred to the Committee on Ways and MeansCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide a credit against income tax to facilitate the accelerated development and deployment of advanced safety systems for commercial motor vehicles.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Commercial Motor Vehicle Advanced Safety Technology Tax Act of 2011’.CommentsClose CommentsPermalink

SEC. 2. CREDIT FOR ADVANCED COMMERCIAL VEHICLE SAFETY SYSTEMS.

(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:CommentsClose CommentsPermalink

‘SEC. 45S. CREDIT FOR COMMERCIAL VEHICLE ADVANCED SAFETY SYSTEMS.

‘(a) Allowance of Credit- For purposes of section 38, the commercial vehicle advanced safety system credit determined under this section is an amount equal to 50 percent of the cost of any qualified commercial vehicle advanced safety system placed in service by the taxpayer during the taxable year.CommentsClose CommentsPermalink





‘(b) Limitations-CommentsClose CommentsPermalink





‘(1) PER SYSTEM- The credit allowable under subsection (a) for each qualified commercial vehicle advanced safety system shall not exceed $1,500.CommentsClose CommentsPermalink





‘(2) PER VEHICLE- The credit allowable under subsection (a) with respect to property for each qualified commercial vehicle shall not exceed--CommentsClose CommentsPermalink





‘(A) $3,500, reduced byCommentsClose CommentsPermalink





‘(B) the aggregate amount of credit allowed to the taxpayer under this section with respect to such vehicle for all prior taxable years.CommentsClose CommentsPermalink





‘(3) PER TAXPAYER- The credit allowable under subsection (a) to the taxpayer for the taxable year shall not exceed $350,000.CommentsClose CommentsPermalink





‘(c) Qualified Commercial Vehicle Advanced Safety System- For purposes of this section, the term ‘qualified commercial vehicle advanced safety system’ means any property which is part of a system installed on a qualified commercial vehicle if--CommentsClose CommentsPermalink





‘(1)(A) such system is a brake stroke monitoring system, lane departure warning system, collision warning system, or vehicle stability system, orCommentsClose CommentsPermalink





‘(B) such system is specifically identified by the Administrator of the Federal Motor Carrier Safety Administration or the Administrator of the National Highway Traffic Safety Administration for the purposes of this paragraph as significantly enhancing the safety or security of the driver, vehicle, passengers, or load of a qualified commercial vehicle and such identification is in effect as of the date such system is placed in service by the taxpayer,CommentsClose CommentsPermalink





‘(2) such system is certified by the manufacturer of such system (before such vehicle is first used by the taxpayer for its intended purpose after installation of such system)--CommentsClose CommentsPermalink





‘(A) to be appropriate for the make, type, and model of the qualified commercial vehicle on which it is to be installed, andCommentsClose CommentsPermalink





‘(B) to function as designed if installed properly,CommentsClose CommentsPermalink





‘(3) in the case of a system which is not installed by the manufacturer of the qualified commercial vehicle or by an installer authorized by the manufacturer of such system, such system is certified by the installer of such system to be properly installed and functioning on the vehicle before such vehicle is first used by the taxpayer for its intended purpose after installation of such system,CommentsClose CommentsPermalink





‘(4) the original use of such system begins with the taxpayer, andCommentsClose CommentsPermalink





‘(5) depreciation (or amortization in lieu of depreciation) is allowable with respect to such system.CommentsClose CommentsPermalink





‘(d) Qualified Commercial Vehicle- For purposes of this section, the term ‘qualified commercial vehicle’ means any highway motor vehicle if--CommentsClose CommentsPermalink





‘(1) such vehicle--CommentsClose CommentsPermalink





‘(A) is to be used to transport persons or property in commerce, andCommentsClose CommentsPermalink





‘(B) has a gross combination weight rating or a gross vehicle weight rating of 26,001 pounds or more, orCommentsClose CommentsPermalink





‘(C) the seating capacity of which is at least 15 individuals (not including the driver),CommentsClose CommentsPermalink





‘(2) the seating capacity of such vehicle is at least 11 individuals (not including the driver) and such vehicle is reasonably expected to be used as a school bus (as defined in section 4221(d)(7)(C)), orCommentsClose CommentsPermalink





‘(3) such vehicle is reasonably expected to be used as an intercity or local bus (as defined in section 4221(d)(7)(B)).CommentsClose CommentsPermalink





‘(e) Other Definitions- For purposes of this section--CommentsClose CommentsPermalink





‘(1) BRAKE STROKE MONITORING SYSTEM- The term ‘brake stroke monitoring system’ means any onboard-monitoring system for air-braked vehicles that--CommentsClose CommentsPermalink





‘(A) uses electronic sensors to determine if the brakes are out of adjustment, not operational, or not fully releasing, andCommentsClose CommentsPermalink





‘(B) displays warnings to the driver showing the existence and exact location and nature of the problem.CommentsClose CommentsPermalink





‘(2) LANE DEPARTURE WARNING SYSTEM- The term ‘lane departure warning system’ means any system that alerts a driver (including audio, visual, and tactile warnings) of unintended movement out of the lane of travel or of an object or vehicle in the adjacent lane blind spot.CommentsClose CommentsPermalink





‘(3) COLLISION WARNING SYSTEM- The term ‘collision warning system’ means any system that--CommentsClose CommentsPermalink





‘(A) monitors the roadway in front, to the side, or to the rear of the vehicle,CommentsClose CommentsPermalink





‘(B) warns the driver when a potential collision risk exists by providing the driver with an audible, visual, or tactile notification, andCommentsClose CommentsPermalink





‘(C) may autonomously slow or redirect the vehicle.CommentsClose CommentsPermalink





‘(4) VEHICLE STABILITY SYSTEM- The term ‘vehicle stability system’ means any active safety system that automatically intervenes when there is a high risk of rollover or directional instability. For purposes of the preceding sentence, active interventions include automatically reducing vehicle speed or by selectively applying appropriate brakes to better align the vehicle to the appropriate path of travel.CommentsClose CommentsPermalink





‘(f) Controlled Groups-CommentsClose CommentsPermalink





‘(1) IN GENERAL- For purposes of this section, all persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as a single taxpayer.CommentsClose CommentsPermalink





‘(2) INCLUSION OF FOREIGN CORPORATIONS- For purposes of paragraph (1), in applying subsections (a) and (b) of section 52 to this section, section 1563 shall be applied without regard to subsection (b)(2)(C) thereof.CommentsClose CommentsPermalink





‘(g) Special Rules-CommentsClose CommentsPermalink





‘(1) BASIS REDUCTION- The basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit.CommentsClose CommentsPermalink





‘(2) RECAPTURE- The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit.CommentsClose CommentsPermalink





‘(3) PROPERTY USED OUTSIDE UNITED STATES NOT QUALIFIED- No credit shall be allowed under subsection (a) with respect to any property referred to in section 50(b)(1) or with respect to the portion of the cost of any property taken into account under section 179.CommentsClose CommentsPermalink





‘(4) PROPERTY USED BY TAX-EXEMPT ENTITY- In the case of any qualified commercial vehicle advanced safety system the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease--CommentsClose CommentsPermalink





‘(A) the person who sold such property to the person or entity using such property shall be treated as the taxpayer that placed such property in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such property (determined without regard to section 38(c)), andCommentsClose CommentsPermalink





‘(B) paragraphs (2) and (3) of subsection (c) shall not apply to such person with respect to such property.CommentsClose CommentsPermalink





‘(5) ELECTION NOT TO TAKE CREDIT- No credit shall be allowed under subsection (a) for any qualified commercial vehicle advanced safety system if the taxpayer elects to not have this section apply to such system.CommentsClose CommentsPermalink





‘(h) Supporting Documentation- No credit shall be allowed under subsection (a) unless the qualified commercial vehicle owner receives such documentation as the Secretary may require, including--CommentsClose CommentsPermalink





‘(1) at the time of purchase of the qualified advanced commercial vehicle advanced safety system--CommentsClose CommentsPermalink





‘(A) documentation that identifies--CommentsClose CommentsPermalink





‘(i) the type of each such system to be installed on the vehicle, andCommentsClose CommentsPermalink





‘(ii) the purchase date of the vehicle containing such system (or the installation date of such system in the case of installation after the date of the first retail sale of such vehicle), andCommentsClose CommentsPermalink





‘(B) the certification required under subsection (c)(2), andCommentsClose CommentsPermalink





‘(2) in the case of a system for which a certification is required under subsection (c)(3), at the time of the installation of such system, the certification required under subsection (c)(3).CommentsClose CommentsPermalink





‘(i) Termination- This section shall not apply to property placed in service after December 31, 2016.’.CommentsClose CommentsPermalink





(b) Credit To Be Part of General Business Credit- Subsection (b) of section 38 of such Code (relating to general business credit) is amended by striking ‘plus’ at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting ‘, plus’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(37) the commercial vehicle advanced safety system credit determined under section 45S(a).’.CommentsClose CommentsPermalink





(c) Conforming Amendments-CommentsClose CommentsPermalink





(1) 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:CommentsClose CommentsPermalink





‘(38) to the extent provided in section 45S(g)(1).’.CommentsClose CommentsPermalink





(2) Subsection (m) of section 6501 of such Code is amended by inserting ‘45S(g)(5),’ after ‘45H(g),’.CommentsClose CommentsPermalink





(3) The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 45R the following new item:CommentsClose CommentsPermalink





‘Sec. 45S. Credit for commercial vehicle advanced safety systems.’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.CommentsClose CommentsPermalink