To amend the Internal Revenue Code of 1986 to deny any deduction for compensatory payments made to any person or governmental entity on account of the April 20, 2010, explosion on and sinking of the mobile offshore drilling unit Deepwater Horizon.

Amends the Internal Revenue Code to deny a business expense tax deduction for any compensatory payments made to any person or governmental entity on account of the explosion on and sinking of the mobile offshore drilling unit Deepwater Horizon on April 20, 2010.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6579 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6579

 To amend the Internal Revenue Code of 1986 to deny any deduction for 
  compensatory payments made to any person or governmental entity on 
 account of the April 20, 2010, explosion on and sinking of the mobile 
               offshore drilling unit Deepwater Horizon.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 26, 2012

  Mr. Bonner introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to deny any deduction for 
  compensatory payments made to any person or governmental entity on 
 account of the April 20, 2010, explosion on and sinking of the mobile 
               offshore drilling unit Deepwater Horizon.

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

SECTION 1. DENIAL OF DEDUCTION FOR COMPENSATORY PAYMENTS ON ACCOUNT OF 
              THE APRIL 20, 2010, DEEPWATER HORIZON INCIDENT.

    (a) In General.--Section 162 of the Internal Revenue Code of 1986 
(relating to trade or business expenses) is amended by redesignating 
subsection (h) as subsection (i) and by inserting after subsection (g) 
the following new subsection:
    ``(h) Compensatory Payments on Account of the April 20, 2010, 
Deepwater Horizon Incident.--No deduction shall be allowed under 
subsection (a) for compensatory payments made to any person or 
governmental entity on account of the April 20, 2010, explosion on and 
sinking of the mobile offshore drilling unit Deepwater Horizon.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to payments made after April, 20, 2010, in taxable years ending 
after such date.
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