I 111th CONGRESS 1st Session H. R. 53 IN THE HOUSE OF REPRESENTATIVES January 6, 2009 Mr. Kirk (for himself, Mr. Roskam, Mr. Hinchey, and Mr. Kucinich) 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 refinery expensing to owners of refineries that are permitted to increase the discharge of pollutants into the Great Lakes.

1.

Short title

This Act may be cited as the Bad Polluters Act of 2009.

2.

Denial of refinery expensing in the case of permits allowing increased pollution into the Great Lakes

(a)

In general

Section 179C of the Internal Revenue Code of 1986 (relating to election to expense certain refineries) is amended by adding at the end the following new subsection: (i)

Denial of expensing in cases of increased Great Lakes pollution

(1)

In general

Subsection (a) shall not apply to any taxpayer for any taxable year if such taxpayer— (A)is a Great Lakes polluter for such taxable year, or (B)is related to any taxpayer who is a Great Lakes polluter for the taxable year of such polluter which ends in or with such taxable year of the taxpayer. (2)

Great Lakes polluter

For purposes of this subsection, the term Great Lakes polluter means any person for any taxable year if such person owns, directly or indirectly, any portion of a refinery which is covered by a National Pollutant Discharge Elimination System permit issued by the Environmental Protection Agency (or an equivalent permit issued by a State) which permits such refinery, for any period which is part of such taxable year, to discharge any pollutant into the Great Lakes in a quantity which (when expressed as an annual limitation) exceeds the quantity (if any) of such pollutant which was permitted to be discharged into the Great Lakes from such refinery for calendar year 2006 under any National Pollutant Discharge Elimination System permit (or equivalent permit). (3)

Related persons

For purposes of this subsection, a person shall be treated as related to another person if such persons are treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414. (4)

Special rule for new refineries

In the case of any refinery originally placed in service after December 31, 2005— (A)paragraph (2) shall be applied by substituting the 1-year period beginning with the date that such refinery was originally placed in service for calendar year 2006, and (B)such refinery shall not be taken into account under this subsection with respect to any taxable year beginning before the end of such 1-year period. . (b)

Effective date

The amendment made by this section shall apply to taxable years ending after the date of the enactment of this Act.