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S. 203 (116th): BRACE Act of 2019

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The text of the bill below is as of Jan 24, 2019 (Introduced). The bill was not enacted into law.

Summary of this bill

Is this legislation dealing with train maintenance on the right track?

Context

There are more than 600 regional railroads and so-called “short lines” across the country, constituting 29% of the nation’s freight rail. A popular federal tax credit created in 2004 equals half of the costs for railroad maintenance and track improvement for these rail lines.

The tax credit has proved popular and been perpetually extended. It was originally enacted to last from 2004 to 2009. Then a year later in 2010, it was both retroactively applied and extended to 2012. Similar provisions kept happening every few years.

In December 2019, the tax credit was extended once again to ...

II

116th CONGRESS

1st Session

S. 203

IN THE SENATE OF THE UNITED STATES

January 24, 2019

(for himself, Mr. Wyden, Mr. Roberts, Mr. Schumer, Mr. Thune, Ms. Stabenow, Mr. Isakson, Mr. Casey, Mr. Inhofe, Mr. Blumenthal, Mr. Moran, and Mr. Wicker) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to permanently extend the railroad track maintenance credit, and for other purposes.

1.

Short title

This Act may be cited as the Building Rail Access for Customers and the Economy Act of 2019 or the BRACE Act of 2019.

2.

Railroad track maintenance credit made permanent

(a)

In general

Section 45G of the Internal Revenue Code of 1986 is amended by striking subsection (f).

(b)

Effective date

(1)

In general

The amendment made by subsection (a) shall apply to expenditures paid or incurred during taxable years beginning after December 31, 2017.

(2)

Safe harbor assignments

Assignments, including related expenditures paid or incurred, under paragraph (2) of section 45G(b) of the Internal Revenue Code of 1986 for taxable years beginning on or after January 1, 2018, and before January 1, 2019, shall be treated as effective as of the close of such taxable year if made pursuant to a written agreement entered into not later than 90 days after the date of the enactment of this Act.