A bill to amend the Internal Revenue Code of 1986 to expand the expensing of environmental remediation costs.

Amends the Internal Revenue Code to: (1) make permanent provisions allowing the expensing of environmental remediation costs; (2) revise the definition of "qualified contaminated site" to include toxic as well as hazardous substances; (3) include within the definition of "hazardous or toxic substances" extremely hazardous substances, as defined by Federal law, and petroleum contaminants; and (4) eliminate the recapture of the expensing deduction upon the sale of environmental remediation property.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 398 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                 S. 398

 To amend the Internal Revenue Code of 1986 to expand the expensing of 
                    environmental remediation costs.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 16, 2005

Mr. Santorum (for himself and Mr. Bayh) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to expand the expensing of 
                    environmental remediation costs.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXPANSION OF EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

    (a) Provision Made Permanent.--Section 198 of the Internal Revenue 
Code of 1986 (relating to expensing of environmental remediation costs) 
is amended by striking subsection (h).
    (b) Expansion of Eligible Contaminates.--
            (1) In general.--Section 198(c)(1)(B) of the Internal 
        Revenue Code of 1986 (defining qualified contaminated site) is 
        amended by striking ``hazardous substance'' and inserting 
        ``hazardous or toxic substance, or in which is located 1 or 
        more structures in which such substance is found or of which 
        such substance is a part''.
            (2) Hazardous or toxic substance.--Section 198(d)(1) of 
        such Code (defining hazardous substance) is amended--
                    (A) by inserting ``or toxic'' after ``hazardous'' 
                in the matter preceding subparagraph (A),
                    (B) by striking ``and'' at the end of subparagraph 
                (A),
                    (C) by striking the period at the end of 
                subparagraph (B) and inserting a comma, and
                    (D) by adding at the end the following new 
                subparagraphs:
                    ``(C) any substance which is listed as an extremely 
                hazardous substance under section 302(a) of the 
                Emergency Planning and Community Right-to-Know Act of 
                1986, and
                    ``(D) any oil (as defined in section 1001(23) of 
                the Oil Pollution Act of 1990).''.
            (3) Conforming amendments.--
                    (A) Paragraphs (1) and (2) of section 198(b) of 
                such Code are each amended by inserting ``or toxic'' 
                after ``hazardous''.
                    (B) Section 198(d)(2) of such Code is amended by 
                striking ``of such Act'' and all that follows and 
                inserting ``of the Comprehensive Environmental 
                Response, Compensation, and Liability Act of 1980 by 
                reason of subparagraph (A) or (C) of subsection (a)(3) 
                thereof.''.
                    (C) The heading for section 198(d) of such Code is 
                amended by inserting ``or Toxic'' after ``Hazardous''.
    (c) Elimination of Recapture on Sale.--Section 198 of the Internal 
Revenue Code of 1986 is amended by striking subsection (e) and by 
redesignating subsections (f) and (g) as subsections (e) and (f), 
respectively.
    (d) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred after the date of the enactment 
of this Act in taxable years ending after such date.
                                 <all>