text: SECTION 1. INCENTIVES FOR INFRASTRUCTURE INVESTMENTS.
  
      (a) Infrastructure Income To Be Qualifying Income for Purposes of 
  Determining Publicly Traded Partnership Status.--
              (1) In general.--Paragraph (1) of section 7704(d) of the 
          Internal Revenue Code of 1986 (defining qualifying income) is 
          amended by redesignating subparagraphs (F) and (G) as 
          subparagraphs (G) and (H), respectively, and by inserting after 
          subparagraph (E) the following new subparagraph:
                      ``(F) income and gains from the use, sale, or 
                  exchange of infrastructure property,''.
              (2) Infrastructure property.--Subsection (d) of section 
          7704 of such Code is amended by adding at the end the following 
          new paragraph:
              ``(6) Infrastructure property.--The term `infrastructure 
          property' means property which is part of any of the following:
                      ``(A) Roads and related improvements.
                      ``(B) Train tracks and related improvements.
                      ``(C) Airports.
                      ``(D) Docks and wharves.
                      ``(E) Facilities for the furnishing of water.
                      ``(F) Sewage facilities.
                      ``(G) Solid waste disposal facilities.
                      ``(H) Facilities for the generation, transmission, 
                  and distribution of electricity, including property 
                  described in clause (iii) or (iv) of section 
                  168(e)(3)(D).
                      ``(I) Facilities for the transmission and 
                  distribution of natural gas.
                      ``(J) Communications facilities.
          For purposes of subparagraphs (A) and (B), related improvements 
          include bridges, tunnels, and traffic control equipment.''.
      (b) Expansion of Deduction for Domestic Production Activities in 
  the Case of Publicly Traded Partnerships.--
              (1) Reduction for oil related qualified production 
          activities income not to apply.--Paragraph (9) of section 
          199(d) of such Code is amended by adding at the end the 
          following new subparagraph:
                      ``(D) Exception for income from publicly traded 
                  partnerships.--Subparagraph (A) shall not apply to 
                  income derived from any publicly traded partnership (as 
                  defined in section 7704(b)).''.
              (2) Distribution and transmission activities of a publicly 
          traded partnership to be eligible.--Subparagraph (B) of section 
          199(c)(4) of such Code is amended by adding at the end the 
          following new flush sentence:
                  ``Clause (ii) shall not apply to the activities of a 
                  publicly traded partnership (as defined in section 
                  7704(b)).''.
      (c) Infrastructure Property Treated as 5-Year Property.--
              (1) In general.--Subparagraph (B) of section 168(e)(3) of 
          such Code is amended by striking ``and'' at the end of clause 
          (vi), by striking the period at the end of clause (vii) and 
          inserting ``, and'', and by inserting after clause (vii) the 
          following new clause:
                              ``(viii) infrastructure property (as 
                          defined in section 7704(d)(6)).''.
              (2) Conforming amendments.--
                      (A) Subparagraph (C) of section 168(e)(3) of such 
                  Code is amended by striking clause (i) and by 
                  redesignating the succeeding clauses accordingly.
                      (B) Subparagraph (D) of such section is amended by 
                  adding ``and'' at the end of clause (i), by striking 
                  ``, and'' at the end of clause (ii) and inserting a 
                  period, and by striking clauses (iii) and (iv).
                      (C) Subparagraph (E) of such section is amended by 
                  striking clauses (i), (ii), and (vii) and by 
                  redesignating clauses (iii), (iv), (v), (vi), (viii), 
                  and (ix) as clauses (i), (ii), (iii), (iv), (v), and 
                  (vi), respectively.
                      (D) Subparagraph (F) of such section is hereby 
                  repealed.
                      (E) Subsection (e) of section 168 of such Code is 
                  amended by striking paragraphs (4) and (5) and by 
                  redesignating the succeeding paragraphs accordingly.
                      (F) The table contained in section 168(g)(3)(B) of 
                  such Code is amended by striking the item relating to 
                  subparagraph (C)(i) and all that follows and inserting 
                  the following:
  
  
   
   
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  ``(C)(ii)..................................................           22
  (C)(iii)...................................................           14
  (D)(i).....................................................           15
  (D)(ii)....................................................           20
  (E)(i).....................................................           20
  (E)(ii)....................................................           39
  (E)(iii)...................................................           39
  (E)(iv)....................................................           20
  (E)(v).....................................................           35
  (E)(vi)....................................................        39''.
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      (d) Like-Kind Exchange Treatment for Exchanges of Infrastructure 
  Property.--Section 1031 of such Code (relating to exchange of property 
  held for productive use or investment) is amended by adding at the end 
  the following new subsection:
      ``(j) All Infrastructure Property Treated as Like Kind.--Except as 
  provided in subsection (h), each real property--
              ``(1) which is infrastructure property (as defined in 
          section 7704(d)(6)), and
              ``(2) which is held for productive use in a trade or 
          business or for investment,
  shall be treated as being of a like kind to every other real property 
  which is infrastructure property (as so defined) and which is so 
  held.''.
      (e) Effective Dates.--
              (1) In general.--Except as provided in paragraphs (2) and 
          (3), the amendments made by this section shall apply to taxable 
          years beginning after the date of the enactment of this Act.
              (2) Depreciation.--The amendments made by subsection (c) 
          shall apply to property placed in service after the date of the 
          enactment of this Act in taxable years ending after such date.
              (3) Exchanges.--The amendment made by subsection (d) shall 
          apply to transfers after the date of the enactment of this Act 
          in taxable years ending after such date.
target: Amends the Internal Revenue Code to: (1) treat income and gains from the use, sale, or exchange of infrastructure property as qualifying income for purposes of the tax treatment of publicly-traded partnerships; (2) exempt publicly-traded partnerships from the limitation on the tax deduction for income attributable to oil-related qualified production activities; (3) allow accelerated depreciation of infrastructure property (i.e., classify such property as five-year property); and (4) treat exchanges of infrastructure property as like-kind exchanges (thus exempting gain from such exchanges from tax).
  
  Defines "infrastructure property" as property which is part of: (1) roads and related improvements; (2) train tracks and related improvements; (3) airports; (4) docks and wharves; (5) facilities for sewage, solid waste disposal, the furnishing of water, the transmission and distribution of natural gas, or the generation, transmission, and distribution of electricity; or (6) communications facilities.
feat_title: To amend the Internal Revenue Code of 1986 to allow partnerships invested in infrastructure property to be treated as publicly traded partnerships, to reduce the depreciation recovery periods for such property, and for other purposes.