| 1 | 1 | | I |
|---|
| 2 | 2 | | 119THCONGRESS |
|---|
| 3 | 3 | | 1 |
|---|
| 4 | 4 | | STSESSION H. R. 2872 |
|---|
| 5 | 5 | | To amend the Internal Revenue Code of 1986 to require adjusted financial |
|---|
| 6 | 6 | | statement income to be reduced by the amount of certain deductions |
|---|
| 7 | 7 | | relating to repair and maintenance of certain public utility property. |
|---|
| 8 | 8 | | IN THE HOUSE OF REPRESENTATIVES |
|---|
| 9 | 9 | | APRIL10, 2025 |
|---|
| 10 | 10 | | Mrs. M |
|---|
| 11 | 11 | | ILLERof West Virginia (for herself and Mr. SCHNEIDER) introduced |
|---|
| 12 | 12 | | the following bill; which was referred to the Committee on Ways and Means |
|---|
| 13 | 13 | | A BILL |
|---|
| 14 | 14 | | To amend the Internal Revenue Code of 1986 to require |
|---|
| 15 | 15 | | adjusted financial statement income to be reduced by |
|---|
| 16 | 16 | | the amount of certain deductions relating to repair and |
|---|
| 17 | 17 | | maintenance of certain public utility property. |
|---|
| 18 | 18 | | Be it enacted by the Senate and House of Representa-1 |
|---|
| 19 | 19 | | tives of the United States of America in Congress assembled, 2 |
|---|
| 20 | 20 | | SECTION 1. SHORT TITLE. 3 |
|---|
| 21 | 21 | | This Act may be cited as the ‘‘Repair Expenditures 4 |
|---|
| 22 | 22 | | Support Infrastructure, Labor Investment, Energy Needs, 5 |
|---|
| 23 | 23 | | and Creates Equity Act of 2025’’ or the ‘‘RESILIENCE 6 |
|---|
| 24 | 24 | | Act of 2025’’. 7 |
|---|
| 25 | 25 | | VerDate Sep 11 2014 07:45 Apr 25, 2025 Jkt 000000 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2872.IH H2872 |
|---|
| 26 | 26 | | mprince on LAP1J3WLY3PROD with $$_JOB 2 |
|---|
| 27 | 27 | | •HR 2872 IH |
|---|
| 28 | 28 | | SEC. 2. REDUCTION OF ADJUSTED FINANCIAL STATEMENT 1 |
|---|
| 29 | 29 | | INCOME WITH RESPECT TO APPLICABLE 2 |
|---|
| 30 | 30 | | PUBLIC UTILITY REPAIR AND MAINTENANCE 3 |
|---|
| 31 | 31 | | OF PUBLIC UTILITY PROPERTY. 4 |
|---|
| 32 | 32 | | (a) I |
|---|
| 33 | 33 | | NGENERAL.—Section 56A(c)(13) of the Inter-5 |
|---|
| 34 | 34 | | nal Revenue Code of 1986 is amended to read as follows: 6 |
|---|
| 35 | 35 | | ‘‘(13) D |
|---|
| 36 | 36 | | EPRECIATION.— 7 |
|---|
| 37 | 37 | | ‘‘(A) I |
|---|
| 38 | 38 | | N GENERAL.—Adjusted financial 8 |
|---|
| 39 | 39 | | statement income shall be— 9 |
|---|
| 40 | 40 | | ‘‘(i) reduced by— 10 |
|---|
| 41 | 41 | | ‘‘(I) depreciation deductions al-11 |
|---|
| 42 | 42 | | lowed under section 167 with respect 12 |
|---|
| 43 | 43 | | to property to which section 168 ap-13 |
|---|
| 44 | 44 | | plies to the extent of the amount al-14 |
|---|
| 45 | 45 | | lowed as deductions in computing tax-15 |
|---|
| 46 | 46 | | able income for the taxable year, and 16 |
|---|
| 47 | 47 | | ‘‘(II) applicable public utility re-17 |
|---|
| 48 | 48 | | pair and maintenance deductions al-18 |
|---|
| 49 | 49 | | lowed under section 162 with respect 19 |
|---|
| 50 | 50 | | to property to which section 168 ap-20 |
|---|
| 51 | 51 | | plies to the extent of the amount al-21 |
|---|
| 52 | 52 | | lowed as deductions in computing tax-22 |
|---|
| 53 | 53 | | able income for the taxable year, and 23 |
|---|
| 54 | 54 | | ‘‘(ii) appropriately adjusted— 24 |
|---|
| 55 | 55 | | ‘‘(I) to disregard any amount of 25 |
|---|
| 56 | 56 | | depreciation expense that is taken into 26 |
|---|
| 57 | 57 | | VerDate Sep 11 2014 07:45 Apr 25, 2025 Jkt 000000 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2872.IH H2872 |
|---|
| 58 | 58 | | mprince on LAP1J3WLY3PROD with $$_JOB 3 |
|---|
| 59 | 59 | | •HR 2872 IH |
|---|
| 60 | 60 | | account on the taxpayer’s applicable 1 |
|---|
| 61 | 61 | | financial statement with respect to 2 |
|---|
| 62 | 62 | | such property, and 3 |
|---|
| 63 | 63 | | ‘‘(II) to take into account any 4 |
|---|
| 64 | 64 | | other item specified by the Secretary 5 |
|---|
| 65 | 65 | | in order to provide that such property 6 |
|---|
| 66 | 66 | | is accounted for in the same manner 7 |
|---|
| 67 | 67 | | as it is accounted for under this chap-8 |
|---|
| 68 | 68 | | ter. 9 |
|---|
| 69 | 69 | | ‘‘(B) A |
|---|
| 70 | 70 | | PPLICABLE PUBLIC UTILITY REPAIR 10 |
|---|
| 71 | 71 | | AND MAINTENANCE DEDUCTIONS .—For pur-11 |
|---|
| 72 | 72 | | poses of this paragraph, the term ‘applicable 12 |
|---|
| 73 | 73 | | public utility repair and maintenance deduc-13 |
|---|
| 74 | 74 | | tions’ means repair and maintenance deductions 14 |
|---|
| 75 | 75 | | allowed to a taxpayer with respect to expendi-15 |
|---|
| 76 | 76 | | tures which are— 16 |
|---|
| 77 | 77 | | ‘‘(i) incurred by such taxpayer with 17 |
|---|
| 78 | 78 | | respect to any property described in sec-18 |
|---|
| 79 | 79 | | tion 168(i)(10) which is owned by such 19 |
|---|
| 80 | 80 | | taxpayer, and 20 |
|---|
| 81 | 81 | | ‘‘(ii) taken into account as a deprecia-21 |
|---|
| 82 | 82 | | tion expense on the taxpayer’s applicable 22 |
|---|
| 83 | 83 | | financial statement with respect to such 23 |
|---|
| 84 | 84 | | property.’’. 24 |
|---|
| 85 | 85 | | VerDate Sep 11 2014 07:45 Apr 25, 2025 Jkt 000000 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2872.IH H2872 |
|---|
| 86 | 86 | | mprince on LAP1J3WLY3PROD with $$_JOB 4 |
|---|
| 87 | 87 | | •HR 2872 IH |
|---|
| 88 | 88 | | (b) EFFECTIVEDATE.—The amendments made by 1 |
|---|
| 89 | 89 | | this section shall apply to taxable years beginning after 2 |
|---|
| 90 | 90 | | December 31, 2024. 3 |
|---|
| 91 | 91 | | Æ |
|---|
| 92 | 92 | | VerDate Sep 11 2014 07:45 Apr 25, 2025 Jkt 000000 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H2872.IH H2872 |
|---|
| 93 | 93 | | mprince on LAP1J3WLY3PROD with $$_JOB |
|---|