Fuel Tax Equalization Credit for Substantial Power Takeoff Vehicles Act of 2005

Fuel Tax Equalization Credit for Substantial Power Takeoff Vehicles Act of 2005 - Amends the Internal Revenue Code to provide a $250 business tax credit for each qualified commercial power takeoff vehicle (certain highway vehicles designed to deliver ready mixed concrete or collect refuse or recyclables) owned by a taxpayer at the end of the year. Stipulates that such credit shall not be available for a vehicle used during the year by a governmental entity or a tax-exempt organization.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 652 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 652

 To amend the Internal Revenue Code of 1986 to allow a credit against 
   income tax for taxpayers owning certain commercial power takeoff 
                               vehicles.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 8, 2005

Mr. Lewis of Kentucky (for himself, Mr. Baker, Mr. Beauprez, Mr. Berry, 
 Mr. Bishop of New York, Mrs. Blackburn, Mr. Blunt, Mr. Boswell, Mrs. 
Capito, Mr. Davis of Tennessee, Mr. Lincoln Diaz-Balart of Florida, Mr. 
  Ehlers, Mr. English of Pennsylvania, Mr. Foley, Mr. Garrett of New 
 Jersey, Mr. Goode, Mr. Gordon, Mr. Green of Wisconsin, Mr. Hayes, Mr. 
     Hayworth, Mr. Holden, Mr. Johnson of Illinois, Mr. Larsen of 
Washington, Mr. Lewis of Georgia, Mr. McIntyre, Mr. Matheson, Mr. Gary 
   G. Miller of California, Mrs. Northup, Mr. Petri, Mr. Platts, Mr. 
 Rehberg, Mr. Rogers of Michigan, Mr. Shaw, Mr. Shuster, Mr. Simmons, 
 Mr. Terry, Mr. Wamp, Mr. Weller, Mr. Wicker, and Mr. Wilson of South 
  Carolina) 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 allow a credit against 
   income tax for taxpayers owning certain commercial power takeoff 
                               vehicles.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fuel Tax Equalization Credit for 
Substantial Power Takeoff Vehicles Act of 2005''.

SEC. 2. CREDIT FOR TAXPAYERS OWNING COMMERCIAL POWER TAKEOFF VEHICLES.

    (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. 45J. COMMERCIAL POWER TAKEOFF VEHICLES CREDIT.

    ``(a) General Rule.--For purposes of section 38, the amount of the 
commercial power takeoff vehicles credit determined under this section 
for the taxable year is $250 for each qualified commercial power 
takeoff vehicle owned by the taxpayer as of the close of the calendar 
year in which or with which the taxable year of the taxpayer ends.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Qualified commercial power takeoff vehicle.--The term 
        `qualified commercial power takeoff vehicle' means any highway 
        vehicle described in paragraph (2) which is propelled by any 
        fuel subject to tax under section 4041 or 4081 if such vehicle 
        is used in a trade or business or for the production of income 
        (and is licensed and insured for such use).
            ``(2) Highway vehicle described.--A highway vehicle is 
        described in this paragraph if such vehicle is--
                    ``(A) designed to engage in the daily collection of 
                refuse or recyclables from homes or businesses and is 
                equipped with a mechanism under which the vehicle's 
                propulsion engine provides the power to operate a load 
                compactor, or
                    ``(B) designed to deliver ready mixed concrete on a 
                daily basis and is equipped with a mechanism under 
                which the vehicle's propulsion engine provides the 
                power to operate a mixer drum to agitate and mix the 
                product en route to the delivery site.
    ``(c) Exception for Vehicles Used by Governments, Etc.--No credit 
shall be allowed under this section for any vehicle owned by any person 
at the close of a calendar year if such vehicle is used at any time 
during such year by--
            ``(1) the United States or an agency or instrumentality 
        thereof, a State, a political subdivision of a State, or an 
        agency or instrumentality of one or more States or political 
        subdivisions, or
            ``(2) an organization exempt from tax under section 501(a).
    ``(d) Denial of Double Benefit.--The amount of any deduction under 
this subtitle for any tax imposed by subchapter B of chapter 31 or part 
III of subchapter A of chapter 32 for any taxable year shall be reduced 
(but not below zero) by the amount of the credit determined under this 
subsection for such taxable year.''.
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 of the Internal Revenue Code of 1986 (relating to general 
business credit) is amended by striking ``plus'' at the end of 
paragraph (18), by striking the period at the end of paragraph (19) and 
inserting ``, plus'', and by adding at the end the following new 
paragraph:
            ``(20) the commercial power takeoff vehicles credit under 
        section 45J(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 45J. Commercial power takeoff vehicles credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 2004.
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