10 LC 18
8838ER
House
Bill 1145
By:
Representatives Stephens of the
164th,
Roberts of the
154th,
Burns of the
157th,
Cheokas of the
134th,
Battles of the
15th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia
Annotated, relating to the imposition, rate, and computation of income tax, so
as to provide for an income tax credit for new qualified freight rail
infrastructure property and qualified locomotive property; to provide for
definitions; to provide for conditions and limitations; to provide for powers,
duties, and authority of the state revenue commissioner with respect to the
foregoing; to provide an effective date; to provide for applicability; to
repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Article
2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating
to the imposition, rate, and computation of income tax, is amended by adding a
new Code section to read as follows:
"48-7-40.29.
(a)
As used in this Code section, the term:
(1)
'Intermodal transfer or transload facility or terminal' means a facility or
terminal primarily utilized in the transfer of freight between rail and any
other mode of transportation.
(2)
'Interoperability' means the ability to control locomotives of the host railroad
and tenant railroad to communicate with and respond to the positive train
control system, including uninterrupted movements over property boundaries,
within the meaning of 49 U.S.C.A. Section 20157.
(3)(A)
'New qualified freight rail infrastructure property' means qualified freight
rail infrastructure property:
(i)
The construction or erection, or in the case of bridges and tunnels, any
eligible bridge or tunnel replacement or expansion pursuant to subparagraph (B)
of this paragraph, of which is completed by the taxpayer after January 1, 2011;
or
(ii)
Which is acquired by the taxpayer after January 1, 2011, but only if the
original use of such property commences with the taxpayer.
(B)
Such term shall not include property which is replacing existing property if the
property is located at the site of the existing property. The limitation of
this subparagraph shall not apply to:
(i)
The replacement or expansion of a bridge or tunnel to allow for additional
clearance, track, or other capacity enhancement where such clearance, track, or
other capacity enhancement did not previously exist; or
(ii)
The replacement of any qualified freight rail infrastructure property with any
component of a positive train control system.
(4)
'Positive train control system' means any system, or combination of systems,
designed to prevent train-to-train collisions, overspeed derailments, incursions
into established work zone limits, and the movement of a train through a switch
left in the wrong position, or any other system or technology otherwise within
the meaning of 49 U.S.C.A. Section 20157.
(5)(A)
'Qualified freight rail infrastructure property' means property used in the
movement of freight by rail:
(i)
The cost of which is chargeable to a capital account; and
(ii)
Which constitutes:
(I)
Railroad grading or tunnel bore;
(II)
Tunnels or subways:
(III)
Track, including ties, rails, ballast, or other track material;
(IV)
Bridges, trestles, culverts, or other elevated or submerged
structures;
(V)
Terminals, yards, roadway buildings, fuel stations, or railroad wharves or
docks, including fixtures attached thereto, and equipment used exclusively
therein;
(VI)
Positive train control systems or costs incurred to provide for interoperability
of such systems with other positive train control systems or with other railroad
signal, communication, or operating systems;
(VII)
Railroad signal, communication, or other operating systems, including components
of such systems that must be installed on locomotives or other rolling
stock;
(VIII)
All improvements made to implement and maintain a positive train control system
contemplated in 49 U.S.C.A. 20101 et seq.; or
(IX)
Intermodal transfer or transload facilities or terminals, including fixtures
attached thereto, and equipment used exclusively therein.
(B)
Such term shall not include:
(i)
Land;
(ii)
Rolling stock, including locomotives; or
(iii)
Property used predominantly outside the United States.
(6)(A)
'Qualified locomotive property' means a locomotive which:
(i)
Meets the Environmental Protection Agency's emission standards for locomotives
and locomotive engines as in effect on December 31, 2005; and
(ii)
Is owned by, or leased to, a taxpayer which meets the capacity expansion
requirement of subparagraph (B) of this paragraph for the taxable year in which
the locomotive is placed in service.
(B)
A taxpayer meets the requirements of this subparagraph with respect to any
locomotive only if, on the last day of the taxable year in which such locomotive
is placed in service, the total horsepower of all locomotives owned by, or
leased to, the taxpayer exceeds the total horsepower of all locomotives owned
by, or leased to, the taxpayer on the last day of the preceding taxable year.
The commissioner shall establish and maintain rules governing the determination
of total horsepower under this subparagraph. The rules may use for this purpose
reports of the United States Secretary of Transportation, in consultation with
the United States Surface Transportation Board or any other similar report
prescribed by the federal government, if the commissioner determines that such
federal report accurately prescribes methodology for determining total
horsepower of locomotives of taxpayers in this state.
(7)
'Railroad signal, communication, or other operating system' means an appliance,
method, device, or system, including hardware and software, which is used to
operate a railroad or to improve safety or capacity of railroad operations,
including a signal, an interlocker, an automatic train stop, or a train control
or cab-signal device.
(b)
A taxpayer shall be allowed a tax credit against the tax imposed under this
chapter in an amount equal to 50 percent of the cost of new qualified freight
rail infrastructure property and qualified locomotive property placed in service
during the taxable year.
(c)
In the case of the leasing of locomotives:
(1)
Only the lessor is eligible for the credit; and
(2)
Total horsepower under subparagraph (a)(6)(B) of this Code section shall be
determined with respect to all locomotives owned by, or leased to, the
lessee.
(d)
If a credit is claimed and allowed under this Code section with respect to the
cost of any qualified freight rail infrastructure property or qualified
locomotive property, the basis of such property shall be reduced by the amount
of the credit so determined.
(e)
In no event shall the total amount of the tax credits under this Code section
for a taxable year exceed the taxpayer's income tax liabilities. Any unused tax
credits shall be allowed the taxpayer against the succeeding 20 years' tax
liabilities. No such tax credits shall be allowed the taxpayer against prior
years' tax liability.
(f)
The commissioner shall be authorized to promulgate any rules and regulations
necessary to implement and administer the provisions of this Code
section."
SECTION
2.
This
Act shall become effective January 1, 2011, and shall be applicable to all
taxable years beginning on or after January 1, 2011.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.