I 112th CONGRESS 1st Session H. R. 53 IN THE HOUSE OF REPRESENTATIVES January 5, 2011 Mr. Connolly of Virginia (for himself and Mr. Tonko) 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 a deduction for removal costs and damages for which taxpayers are liable under the Oil Pollution Act of 1990.

1.

Denial of deduction for removal costs and damages for oil spills

(a)

In general

Part IX of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to items not deductible) is amended by adding at the end the following new section:

280I.

Expenses for removal costs and damages relating to oil spill liability

No deduction shall be allowed under this chapter for any amount paid or incurred with respect to any costs or damages for which the taxpayer is liable under section 1002 of the Oil Pollution Act of 1990 (33 U.S.C. 2702).

. (b)

Clerical amendment

The table of sections for part IX of subchapter B of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 280I. Expenses for removal costs and damages relating to oil spill liability. . (c)

Effective date

The amendments made by this section shall apply with respect to any liability arising after December 31, 2009.