A proposed amendment was submitted in the U.S. Senate on Wednesday that would provide investment tax credit of about 5% of the cost of 2007 emissions-compliant diesel equipment purchased in 2007.
The credits could be used against the taxpayer’s regular tax or AMT liability. The credit would be part of the general business credit so that unused credits in a taxable year would be carried over to another taxable year. Taxpayers would be allowed to expense the acquisition cost of qualifying equipment acquired and placed in service in 2007 for the purposes of both the regular tax and the AMT.
A spokesperson for the sponsor Sen. Gordon Smith (R-OR) told Fleet Owner that the energy bill would be a likely avenue for the amendment. The amendment would need the backing of the full Senate before the House of Representatives could consider it. Sen. Blanche Lincoln (D-AR) is a co-sponsor of the bill.