[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2436 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 2436

To amend the Internal Revenue Code of 1986 to repeal the targeted area 
limitation on the expense deduction for environmental remediation costs 
         and to extend the termination date of such deduction.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 13, 2000

  Mr. Abraham 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 repeal the targeted area 
limitation on the expense deduction for environmental remediation costs 
         and to extend the termination date of such deduction.

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

SECTION 1. MODIFICATIONS TO EXPENSING OF ENVIRONMENTAL REMEDIATION 
              COSTS.

    (a) Expensing Not Limited to Sites in Targeted Areas.--Subsection 
(c) of section 198 of the Internal Revenue Code of 1986 is amended to 
read as follows:
    ``(c) Qualified Contaminated Site.--For purposes of this section--
            ``(1) In general.--The term `qualified contaminated site' 
        means any area--
                    ``(A) which is held by the taxpayer for use in a 
                trade or business or for the production of income, or 
                which is property described in section 1221(a)(1) in 
                the hands of the taxpayer, and
                    ``(B) at or on which there has been a release (or 
                threat of release) or disposal of any hazardous 
                substance.
            ``(2) National priorities listed sites not included.--Such 
        term shall not include any site which is on, or proposed for, 
        the national priorities list under section 105(a)(8)(B) of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (as in effect on the date of the 
        enactment of this section).
            ``(3) Taxpayer must receive statement from state 
        environmental agency.--An area shall be treated as a qualified 
        contaminated site with respect to expenditures paid or incurred 
        during any taxable year only if the taxpayer receives a 
        statement from the appropriate agency of the State in which 
        such area is located that such area meets the requirement of 
        paragraph (1)(B).
            ``(4) Appropriate state agency.--For purposes of paragraph 
        (2), the chief executive officer of each State may, in 
        consultation with the Administrator of the Environmental 
        Protection Agency, designate the appropriate State 
        environmental agency within 60 days of the date of the 
        enactment of this section. If the chief executive officer of a 
        State has not designated an appropriate environmental agency 
        within such 60-day period, the appropriate environmental agency 
        for such State shall be designated by the Administrator of the 
        Environmental Protection Agency.''
    (b) Extension of Termination Date.--Subsection (h) of section 198 
of such Code is amended by striking ``December 31, 2001'' and inserting 
``June 30, 2004''.
    (c) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred after December 31, 2000.
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