Bill Summary
This proposed bill, known as the "Building Rail Access for Customers and the Economy Act of 2019" or the "BRACE Act of 2019", aims to amend the Internal Revenue Code of 1986. The main purpose of this amendment is to make the railroad track maintenance credit a permanent part of the tax code. This credit is currently set to expire after December 31, 2017, but this bill seeks to remove the expiration date and make it a permanent benefit for eligible businesses. The effective date for this amendment would be for expenditures paid or incurred after December 31, 2017. Additionally, the bill includes a provision that allows for safe harbor assignments, which would apply to related expenditures paid or incurred after December 31, 2017, if made pursuant to a written agreement within 90 days of the enactment of this Act.
Possible Impacts
1) Individuals working in the railroad industry may be affected by the permanent extension of the railroad track maintenance credit, as it could potentially provide them with more stable job opportunities.
2) Businesses and companies that rely on rail transportation may see an increase in costs, as the permanent extension of the credit could lead to higher taxes for them.
3) Taxpayers in general may see a slight decrease in government revenue due to the elimination of subsection (f) in Section 45G, which could potentially affect the funding of other government programs and services.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 510 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 510
To amend the Internal Revenue Code of 1986 to permanently extend the
railroad track maintenance credit, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 11, 2019
Mr. Blumenauer (for himself and Mr. Kelly of Pennsylvania) 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 permanently extend the
railroad track maintenance credit, 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. 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''.
SEC. 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, referred to in section
45G(b)(2) of the Internal Revenue Code of 1986 for taxable
years ending after December 31, 2017, shall not fail to be
treated as timely made if made pursuant to a written agreement
entered into not later than 90 days after the date of the
enactment of this Act.
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