H.R. 4001 (112th): To amend the Internal Revenue Code of 1986 to allow partnerships invested in infrastructure property to be ...

...treated as publicly traded partnerships, to reduce the depreciation recovery periods for such property, and for other purposes.

112th Congress, 2011–2013. Text as of Feb 09, 2012 (Introduced).

Status & Summary | PDF | Source: GPO

I

112th CONGRESS

2d Session

H. R. 4001

IN THE HOUSE OF REPRESENTATIVES

February 9, 2012

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 partnerships invested in infrastructure property to be treated as publicly traded partnerships, to reduce the depreciation recovery periods for such property, and for other purposes.

1.

Incentives for infrastructure investments

(a)

Infrastructure income To be qualifying income for purposes of determining publicly traded partnership status

(1)

In general

Paragraph (1) of section 7704(d) of the Internal Revenue Code of 1986 (defining qualifying income) is amended by redesignating subparagraphs (F) and (G) as subparagraphs (G) and (H), respectively, and by inserting after subparagraph (E) the following new subparagraph:

(F)

income and gains from the use, sale, or exchange of infrastructure property,

.

(2)

Infrastructure property

Subsection (d) of section 7704 of such Code is amended by adding at the end the following new paragraph:

(6)

Infrastructure property

The term infrastructure property means property which is part of any of the following:

(A)

Roads and related improvements.

(B)

Train tracks and related improvements.

(C)

Airports.

(D)

Docks and wharves.

(E)

Facilities for the furnishing of water.

(F)

Sewage facilities.

(G)

Solid waste disposal facilities.

(H)

Facilities for the generation, transmission, and distribution of electricity, including property described in clause (iii) or (iv) of section 168(e)(3)(D).

(I)

Facilities for the transmission and distribution of natural gas.

(J)

Communications facilities.

For purposes of subparagraphs (A) and (B), related improvements include bridges, tunnels, and traffic control equipment.

.

(b)

Expansion of deduction for domestic production activities in the case of publicly traded partnerships

(1)

Reduction for oil related qualified production activities income not to apply

Paragraph (9) of section 199(d) of such Code is amended by adding at the end the following new subparagraph:

(D)

Exception for income from publicly traded partnerships

Subparagraph (A) shall not apply to income derived from any publicly traded partnership (as defined in section 7704(b)).

.

(2)

Distribution and transmission activities of a publicly traded partnership to be eligible

Subparagraph (B) of section 199(c)(4) of such Code is amended by adding at the end the following new flush sentence:

Clause (ii) shall not apply to the activities of a publicly traded partnership (as defined in section 7704(b)).

.

(c)

Infrastructure property treated as 5-Year property

(1)

In general

Subparagraph (B) of section 168(e)(3) of such Code is amended by striking and at the end of clause (vi), by striking the period at the end of clause (vii) and inserting , and, and by inserting after clause (vii) the following new clause:

(viii)

infrastructure property (as defined in section 7704(d)(6)).

.

(2)

Conforming amendments

(A)

Subparagraph (C) of section 168(e)(3) of such Code is amended by striking clause (i) and by redesignating the succeeding clauses accordingly.

(B)

Subparagraph (D) of such section is amended by adding and at the end of clause (i), by striking , and at the end of clause (ii) and inserting a period, and by striking clauses (iii) and (iv).

(C)

Subparagraph (E) of such section is amended by striking clauses (i), (ii), and (vii) and by redesignating clauses (iii), (iv), (v), (vi), (viii), and (ix) as clauses (i), (ii), (iii), (iv), (v), and (vi), respectively.

(D)

Subparagraph (F) of such section is hereby repealed.

(E)

Subsection (e) of section 168 of such Code is amended by striking paragraphs (4) and (5) and by redesignating the succeeding paragraphs accordingly.

(F)

The table contained in section 168(g)(3)(B) of such Code is amended by striking the item relating to subparagraph (C)(i) and all that follows and inserting the following:

(C)(ii)22
(C)(iii)14
(D)(i)15
(D)(ii)20
(E)(i)20
(E)(ii)39
(E)(iii)39
(E)(iv)20
(E)(v)35
(E)(vi)39

.

(d)

Like-Kind exchange treatment for exchanges of infrastructure property

Section 1031 of such Code (relating to exchange of property held for productive use or investment) is amended by adding at the end the following new subsection:

(j)

All infrastructure property treated as like kind

Except as provided in subsection (h), each real property—

(1)

which is infrastructure property (as defined in section 7704(d)(6)), and

(2)

which is held for productive use in a trade or business or for investment,

shall be treated as being of a like kind to every other real property which is infrastructure property (as so defined) and which is so held.

.

(e)

Effective dates

(1)

In general

Except as provided in paragraphs (2) and (3), the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

(2)

Depreciation

The amendments made by subsection (c) shall apply to property placed in service after the date of the enactment of this Act in taxable years ending after such date.

(3)

Exchanges

The amendment made by subsection (d) shall apply to transfers after the date of the enactment of this Act in taxable years ending after such date.