Austin and Perry Safe Boating Incentive Act

“25E. Locator beacons

“(a) Allowance of credit—In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 50 percent of the sum of the amount paid or accrued for—

“(1) a qualified emergency position-indicating radio beacon, and

“(2) a qualified personal locator beacon.

“(b) Limitations

“(1) Annual limit—The amount allowed as a credit for any taxable year under subsection (a) shall not exceed $200.

“(2) Lifetime limit—The aggregate amount allowed as a credit for all taxable years under subsection (a) shall not exceed the excess of—

“(A) $500, reduced (but not below zero) by

“(B) the aggregate amount allowed as a credit under subsection (a) to the taxpayer for all prior taxable years.

“(c) Definitions—For the purposes of this section—

“(1) Qualified emergency position-indicating radio beacon—The term qualified emergency position-indicating radio beacon means a device installed on an eligible boat that—

“(A) transmits distress signals at a frequency between 406.0 and 406.1 MHz,

“(B) is manufactured by a company approved to manufacture beacons by the International Cospas-Sarsat Programme, and

“(C) is registered with the United States National Oceanic and Atmospheric Administration.

“(2) Qualified personal locator beacon—The term qualified personal locator beacon means a device designed to be carried by an individual that—

“(A) transmits distress signals at a frequency between 406.0 and 406.1 MHz,

“(B) is manufactured by a company approved to manufacture beacons by the International Cospas-Sarsat Programme,

“(C) is registered with the United States National Oceanic and Atmospheric Administration, and

“(D) is acquired for use in boating activities by the taxpayer who owns or operates an eligible boat.

“(3) Eligible boats—The term eligible boat means—

“(A) any recreational vessel (as defined in section 2101 of title 46, United States Code),

“(B) any small passenger vessel (as defined in section 2101 of title 46, United States Code) carrying not more than 250 passengers, and

“(C) any uninspected passenger vessel (as defined in section 2101 of title 46, United States Code).

“(d) Regulations—The Secretary shall prescribe such regulations or other guidance as may be necessary to carry out this section, including regulations relating to the installation of a qualified emergency position-indicating radio beacon on an eligible boat.”