,i #aagth ,,congress #b;d ,session ,h4 ,r4 #gijb ,,in ,,the ,,house ,,of ,,representatives ,may #bg1 #bjbb,mr4 ,schneider 7for himself1 ,mr4 ,la,hood1 ,mr4 ,bacon1 ,mr4 ,bishop of ,georgia1 ,mr4 ,blumenauer1 ,ms4 ,bonamici1 ,mr4 ,bost1 ,mr4 ,crawford1 ,mr4 ,rodney ,davis of ,illinois1 ,mr4 ,michael ,f4 ,doyle of ,pennsylvania1 ,mr4 ,gohmert1 ,mr4 ,tony ,gonzales of ,texas1 ,ms4 ,granger1 ,ms4 ,herrera ,beutler1 ,mr4 ,hudson1 ,mr4 ,huffman1 ,mr4 ,kildee1 ,mr4 ,mc,caul1 ,mr4 ,mc,kinley1 ,mr4 ,meijer1 ,mr4 ,nehls1 ,mr4 ,panetta1 ,mr4 ,payne1 ,mr4 ,rogers of ,alabama1 ,ms4 ,snchez1 ,ms4 ,sewell1 ,mrs4 ,walorski1 ,mr4 ,weber of ,texas1 and ,mr4 ,williams of ,texas7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide a tax credit to encourage the replacement or modernization of inefficient1 outdated freight railcars1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,freight ,rail ,assistance and ,investment to ,launch ,coronavirus-,era ,activity and ,recovery ,act of #bjbb or the ,freight ,,railcar ,act of #bjbb4 #b4 ,freight railcar modernization credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de,u4 ,freight railcar modernization credit 7a7 ,in general ,for purposes of section #ch1 the freight railcar modernization credit determined under this section for the taxable year is an amount equal to #aj percent of the taxpayer's freight railcar fleet modernization expenses4 7b7 ,limitation ,no more than #b1jjj qualified freight railcars per taxpayer may be taken into account for purposes of determining the credit under subsection 7a7 with respect to a taxable year4 7c7 ,definitions ,for purposes of this section-- 7#a7 ,freight railcar fleet modernization expenses ,the term freight railcar fleet modernization expenses means the sum of the qualifying railcar replacement and modernization amount4 7#b7 ,qualifying railcar replacement and modernization amount ,the term qualifying railcar replacement and modernization amount means-- 7,a7 the basis of any qualified newly built replacement railcar placed in service by the taxpayer during the taxable year1 plus 7,b7 the qualified railcar modernization expenditures of the taxpayer for the taxable year4 7#c7 ,qualified newly built replacement railcar ,the term qualified newly built replacement railcar means a qualified freight railcar which-- 7,a7 is built after the date of the enactment of this section1 7,b7 is ordered or originally placed in service before ,january #a1 #bjbd1 and 7,c7 replaces two freight railcars owned by the taxpayer that-- 7i7 were in service within the #dh months preceding the beginning of the taxable year1 and 7ii7 which were both scrapped and permanently removed from the ,,aar ,umler ,system master file during such taxable year4 7#d7 ,qualified freight railcar 7,a7 ,in general ,the term qualified freight railcar means a freight railcar that-- 7i7 is either acquired or modernized by the taxpayer after the date of the enactment of this section1 7ii7 meets the significant improvement requirements for capacity1 fuel efficiency1 or performance of subparagraph 7,b71 7iii7 was built in a qualified facility1 and 7iv7 with respect to which no credit under this section was previously claimed by any taxpayer4 7,b7 ,significant improvement ,for purposes of this paragraph1 an improvement in capacity or fuel efficiency and performance with respect to a modernized freight railcar is a significant improvement if-- 7i7 such capacity or fuel efficiency1 as the case may be1 is increased by at least #h percent1 or 7ii7 in the case of performance1 the qualified freight railcar meets the requirements of the ,association of ,american ,railroads ,standard ,s-#bhf or is modernized to meet the design standards set forth in final rule ,,hm-#bea of the ,pipeline and ,hazardous ,materials ,safety ,administration 7as amended by ,,hm-#bea;,c74 7,c7 ,modernized ,the term modernized means modified1 retrofitted1 converted or rebuilt for the purpose of meeting the significant improvement criteria of subparagraph 7,b74 7#e7 ,qualified railcar modernization expenditure ,the term qualified railcar modernization expenditure means any amount paid or incurred-- 7,a7 in connection with the modernization of a freight railcar resulting in such railcar being designated a qualified freight railcar1 and 7,b7 which is properly chargeable to a capital account with respect to such freight railcar4 7#f7 ,qualified facility ,the term qualified facility means a facility that is not owned or leased by an entity that would be ineligible for an award of a contract or subcontract under #di ,u4,s4,c4 #ecbc7u74 7d7 ,special rules 7#a7 ,denial of double benefit ,no credit shall be allowed under subsection 7a7 for any expense for which a deduction or credit is allowed under any other provision of this chapter4 7#b7 ,basis adjustment ,for purposes of this subtitle1 if a credit is allowed under subsection 7a7 with respect to any qualified freight railcar1 the basis of such railcar shall be reduced by the amount of the credit so allowed4 7#c7 ,sale-leaseback ,for purposes of subsection 7a71 if any qualified freight railcar is-- 7,a7 originally placed in service by a person after the date of the enactment of this section1 and 7,b7 sold and leased back by such person within #c months after such railcar is originally placed in service 7or1 in the case of more than one railcar subject to the same lease1 within #c months after the date the final railcar is placed in service1 so long as the period between the time the first railcar is placed in service and the time the last railcar is placed in service does not exceed #bd months71 such railcar shall be treated as originally placed in service not earlier than the date on which such railcar is used under the leaseback referred to in this paragraph4 7#d7 ,syndication ,for purposes of subsection 7a71 if-- 7,a7 any qualified freight railcar is originally placed in service after the date of enactment of this section by the lessor of such railcar1 7,b7 such railcar is sold by such lessor or any subsequent purchaser within #c months after the date such railcar was originally placed in service 7or1 in the case of more than one railcar subject to the same lease1 within #c months after the date the final railcar is placed in service and the time the last railcar is placed in service does not exceed #ab months71 and 7,c7 the user of such railcar after the last sale during such #c-month period remains the same as when such railcar was originally placed in service1 such railcars shall be treated as originally placed in service not earlier than the date of such last sale4 7#e7 ,entities owned or controlled by state-owned enterprises ineligible ,no credit under subsection 7a7 shall be allowed to any taxpayer that would be ineligible for an award of a contract or subcontract under #di ,u4,s4,c4 #ecbc7u74 7e7 ,termination ,this section shall not apply to any qualifying railcar replacement and modernization amount after ,december #ca1 #bjbd4 4 7b7 ,credit allowed as business credit ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf 7relating to current year business credit7 is amended by striking plus at the end of paragraph 7#cb71 by striking the period at the end of paragraph 7#cc7 and inserting 1 plus and by inserting at the end thereof the following new paragraph3 7#cd7 the freight railcar modernization credit determined under section #de,u4 4 7c7 ,coordination with section #ee ,section #ch7;c77#d77;,b7 of the ,internal ,revenue ,code of #aihf is amended by redesignating clauses 7x71 7xi71 and 7xii7 as clauses 7xi71 7xii71 and 7xiii7 respectively1 and by inserting after clause 7ix7 the following new clause3 7x7 the freight railcar modernization credit determined under section #de,u1 4 7d7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #de,t the following new item3 ,sec4 #de,u4 ,freight railcar modernization credit4 4 7e7 ,effective date ,the amendments made by this section shall apply to property placed in service1 and amounts paid or incurred1 after ,december #ca1 #bjba4 #c4 ,report on the freight railcar modernization credit 7a7 ,in general ,not later than #c years after the date of the enactment of this ,act1 the ,secretary of the ,treasury 7or the ,secretary's delegate71 shall submit to the ,committee on ,ways and ,means of the ,house of ,representatives and the ,committee on ,finance of the ,senate a report on activity with respect to the qualified freight railcar credit under section #de,u of the ,internal ,revenue ,code of #aihf4 7b7 ,report contents ,the report submitted under subsection 7a7 shall contain information with respect to the following3 7#a7 ,the number of times the credit was claimed4 7#b7 ,the number of railcars scrapped as a result of the credit4 7#c7 ,the number of new railcars entered into contract as a result of the credit4 7#d7 ,the number of new railcars built as a result of the credit4