To amend the Internal Revenue Code of 1986 to provide for expensing of installing underground electric lines within the Hurricane Gustav disaster area, and for other purposes.

Amends the Internal Revenue Code to allow a taxpayer election to expense the cost of installing underground public utility property in the Hurricane Gustav disaster area. Terminates such expensing allowance after December 31, 2009.

Directs the Comptroller General to study and report to Congress on the electric grid failures in Louisiana following Hurricane Gustav.

[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 7043 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 7043

To amend the Internal Revenue Code of 1986 to provide for expensing of 
   installing underground electric lines within the Hurricane Gustav 
                 disaster area, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 24, 2008

 Mr. Cazayoux introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on Energy 
    and Commerce, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide for expensing of 
   installing underground electric lines within the Hurricane Gustav 
                 disaster area, 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. DEDUCTION FOR UNDERGROUND PUBLIC UTILITY PROPERTY FOR 
              FURNISHING ELECTRICITY WITHIN THE HURRICANE GUSTAV 
              DISASTER AREA.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new section:

``SEC. 179F. DEDUCTION FOR UNDERGROUND PUBLIC UTILITY PROPERTY FOR 
              FURNISHING ELECTRICITY DEDUCTION WITHIN THE HURRICANE 
              GUSTAV DISASTER AREA.

    ``(a) In General.--A taxpayer may elect to treat the cost of 
qualified public utility property placed in service during the taxable 
year 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 such 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 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) Definitions.--For purposes of this section--
            ``(1) Qualified public utility property.--The term 
        `qualified public utility property' means public utility 
        property (as defined in section 168(i)(10)) used for the 
        furnishing of electrical energy--
                    ``(A) with respect to which depreciation (or 
                amortization in lieu of depreciation) is allowable, and
                    ``(B) which is installed underground within the 
                area determined by the President to warrant assistance 
                from the Federal Government under the Robert T. 
                Stafford Disaster Relief and Emergency Assistance Act 
                by reason of Hurricane Gustav.
    ``(d) Election To Allocate Deduction to Cooperative Owner.--For 
purposes of this section, rules similar to the rules of section 179C(g) 
shall apply.
    ``(e) Basis Reduction.--For purposes of this subtitle, if a 
deduction is allowed under this section with respect to property, the 
basis of such property shall be reduced by the amount of the deduction 
so allowed.
    ``(f) Termination.--This section shall not apply to property placed 
in service after December 31, 2009.''.
    (b) Conforming Amendments.--
            (1) Section 263(a)(1) of such Code is amended by striking 
        ``or'' at the end of subparagraph (K), by striking the period 
        at the end of subparagraph (L) and inserting ``, or'', and by 
        inserting after subparagraph (L) the following new 
        subparagraph:
                    ``(M) expenditures for which a deduction is allowed 
                under section 179F.''.
            (2) Section 312(k)(3)(B) of such Code is amended by 
        striking ``or 179E'' each place it appears in the heading and 
        text thereof and inserting ``179E, or 179F''.
            (3) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (35), by striking the period at 
        the end of paragraph (36) and inserting ``, and'', and by 
        inserting after paragraph (36) the following new paragraph:
            ``(37) to the extent provided in section 179F(e).''.
            (4) Paragraphs (2)(C) and (3)(C) of section 1245(a) are 
        each amended by inserting ``179F,'' after ``179E,''.
            (5) The table of sections for part VI of subchapter B of 
        chapter 1 of such Code is amended by adding at the end the 
        following new item:

``Sec. 179F. Deduction for underground public utility property for 
                            furnishing electricity deduction within the 
                            Hurricane Gustav disaster area.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 2. STUDY OF ELECTRIC GRID FAILURES AFFECTING LOUISIANA FOLLOWING 
              HURRICANE GUSTAV.

    Not later than 180 days after the date of the enactment of this 
Act, the Comptroller General of the United States shall--
            (1) conduct a study of the electric grid failures that led 
        to the long-lasting, extensive power outages that affected 
        Louisiana following Hurricane Gustav, and
            (2) submit a report containing the findings and conclusions 
        of such study to the Congress.
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