[Congressional Bills 103th Congress]
[From the U.S. Government Printing Office]
[H.R. 4879 Introduced in House (IH)]
103d CONGRESS
2d Session
H. R. 4879
To amend the Internal Revenue Code of 1986 to restore the 10 percent
regular investment tax credit.
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IN THE HOUSE OF REPRESENTATIVES
August 1, 1994
Mr. McHale introduced the following bill; which was referred to the
Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to restore the 10 percent
regular investment tax credit.
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 ``Investment Tax Credit Act of 1994''.
SEC. 2. RESTORATION OF INVESTMENT CREDIT.
(a) Allowance of Credit.--Section 46 of the Internal Revenue Code
of 1986 (relating to amount of investment credit) is amended by
striking ``and'' at the end of paragraph (2), by striking the period at
the end of paragraph (3) and inserting ``, and'', and by adding at the
end thereof the following new paragraph:
``(4) the general investment credit.''
(b) Amount of Credit.--Section 48 of such Code is amended by adding
at the end thereof the following new subsection:
``(c) General Investment Credit.--
``(1) In general.--For purposes of section 46, the general
investment credit for any taxable year is an amount equal to 10
percent of the qualified investment for such taxable year.
``(2) Qualified investment.--
``(A) In general.--For purposes of paragraph (1),
the qualified investment for any taxable year is the
aggregate of--
``(i) the applicable percentage of the
basis of each new section 38 property placed in
service by the taxpayer during such taxable
year, plus
``(ii) the applicable percentage of the
cost of each used section 38 property placed in
service by the taxpayer during such taxable
year.
``(B) Applicable percentage.--For purposes of
subparagraph (A), the applicable percentage for any
property shall be determined under paragraphs (2) and
(7) of section 46(c) (as in effect on the day before
the date of the enactment of the Revenue Reconciliation
Act of 1990).
``(C) Certain rules made applicable.--The
provisions of subsections (b) and (c) of section 48 (as
in effect on the day before the date of the enactment
of the Revenue Reconciliation Act of 1990) shall apply
for purposes of this paragraph.
``(3) Section 38 property.--For purposes of this
subsection, the term `section 38 property' means--
``(A) tangible personal property (other than an air
conditioning or heating unit), or
``(B) other tangible property (not including a
building and its structural components) but only if
such property--
``(i) is used as an integral part of
manufacturing, production, or extraction or of
furnishing transportation, communications,
electrical energy, gas, water, or sewage
disposal services,
``(ii) constitutes a research facility used
in connection with any of the activities
referred to in clause (i), or
``(iii) constitutes a facility used in
connection with any of the activities referred
to in clause (i) for the bulk storage of
fungible commodities (including commodities in
a liquid or gaseous state), or
``(C) elevators and escalators, but only if--
``(i) the construction, reconstruction, or
erection of the elevator or escalator is
completed by the taxpayer, or
``(ii) the original use of such elevator or
escalator commences with the taxpayer, or
``(D) single purpose agricultural or horticultural
structures; or
``(E) a storage facility (not including a building
and its structural components) used in connection with
the distribution of petroleum or any primary product of
petroleum.
Such term includes only property to which section 168 applies
without regard to any useful life and any other property with
respect to which depreciation (or amortization in lieu of
depreciation) is allowable and having a useful life (determined
as of the time such property is placed in service) of 3 years
or more.
``(4) Coordination with other credits.--This subsection
shall not apply to any property to which the energy credit or
rehabilitation credit would apply unless the taxpayer elects to
waive the application of such credits to such property.
``(5) Certain progress expenditure rules made applicable.--
Rules similar to rules of subsection (c)(4) and (d) of section
46 (as in effect on the day before the date of the enactment of
the Revenue Reconciliation Act of 1990) shall apply for
purposes of this subsection.''
(c) Technical Amendments.--
(1) Subparagraph (C) of section 49(a)(1) of such Code is
amended by striking ``and'' at the end of clause (ii), by
striking the period at the end of clause (iii) and inserting
``, and'', and by adding at the end thereof the following new
clause:
``(iv) the basis of any new section 38
property and the cost of any used section 38
property.''
(2) Subparagraph (E) of section 50(a)(2) of such Code is
amended by inserting ``or 48(c)(5)'' before the period at the
end thereof.
(3) Paragraph (5) of section 50(a) of such Code is amended
by adding at the end thereof the following new subparagraph:
``(D) Special rules for certain property.--In the
case of any section 38 property which is 3-year
property (within the meaning of section 168(e))--
``(i) the percentage set forth in clause
(ii) of the table contained in paragraph (1)(B)
shall be 66 percent,
``(ii) the percentage set forth in clause
(iii) of such table shall be 33 percent, and
``(iii) clauses (iv) and (v) of such table
shall not apply.''
(4)(A) The section heading for section 48 of such Code is
amended to read as follows:
``SEC. 48. OTHER CREDITS.''
(B) The table of sections for subpart E of part IV of
subchapter A of chapter 1 of such Code is amended by striking
the item relating to section 48 and inserting the following:
``Sec. 48. Other credits.''
(d) Effective Date.--The amendments made by this section shall
apply to periods after the date of the enactment of this Act under
rules similar to the rules of section 48(m) of the Internal Revenue
Code of 1986 (as in effect on the day before the date of the enactment
of the Revenue Reconciliation Act of 1990).
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