[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1506 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1506

 To provide tax relief for persons affected by the discharge of oil in 
 connection with the explosion on, and sinking of, the mobile offshore 
                    drilling unit Deepwater Horizon.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 17, 2013

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

_______________________________________________________________________

                                 A BILL


 
 To provide tax relief for persons affected by the discharge of oil in 
 connection with the 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. SHORT TITLE.

    This Act may be cited as the ``Gulf Coast Oil Recovery Zone Tax 
Relief and Economic Recovery Act''.

SEC. 2. RECOVERY ZONE; GULF OIL SPILL.

    For purposes of this Act--
            (1) Recovery zone.--The term ``Recovery Zone'' means the 
        following counties and parishes affected by the Gulf oil spill:
                    (A) The counties of Escambia, Santa Rosa, Okaloosa, 
                Walton, Bay, Gulf, Franklin, and Wakulla in the State 
                of Florida.
                    (B) The counties of Hancock, Harrison, and Jackson 
                in the State of Mississippi.
                    (C) The counties of Mobile and Baldwin in the State 
                of Alabama.
                    (D) The parishes of Orleans, St. Tammany, St. 
                Bernard, Plaquemines, Jefferson, Lafourche, Terrebonne, 
                St. Mary, Iberia, Vermilion, and Cameron in the State 
                of Louisiana.
            (2) Gulf oil spill.--The term ``Gulf oil spill'' means the 
        discharge of oil by reason of the explosion on, and sinking of, 
        the mobile offshore drilling unit Deepwater Horizon.

SEC. 3. NON-RECOGNITION OF INCOME FROM INSURANCE PROCEEDS WHICH ARE 
              REINVESTED IN THE RECOVERY ZONE.

    (a) In General.--For purposes of the Internal Revenue Code of 1986, 
amounts received from any qualified Gulf oil spill payment shall be 
recognized only to the extent that the amount realized exceeds the 
qualified investments made by the taxpayer with respect to such 
qualified Gulf oil spill payment.
    (b) Qualified Gulf Oil Spill Payment.--For purposes of this 
section, the term ``qualified Gulf oil spill payment'' means--
            (1) any proceeds or payments from insurance received in 
        connection with the Gulf oil spill, or
            (2) any payment for damages attributable to the Gulf oil 
        spill under section 1002 of the Oil Pollution Act of 1990 (33 
        U.S.C. 2702).
    (c) Qualified Investment.--For purposes of this section--
            (1) In general.--The term ``qualified investment'' means, 
        with respect to any qualified Gulf oil spill payment, the sum 
        of the qualified recovery zone investments which are made by 
        the taxpayer before the date which is 5 years after the later 
        of--
                    (A) the date of the qualified Gulf oil spill 
                payment, or
                    (B) the date of the enactment of this Act.
            (2) Qualified recovery zone investment.--The term 
        ``qualified recovery zone investment'' means the sum of--
                    (A) amounts paid or incurred for tangible property 
                (to which section 168 of the Internal Revenue Code of 
                1986 applies) acquired by purchase (within the meaning 
                of section 179(d)(2) of such Code) for use in the 
                active conduct of a recovery zone trade or business 
                property, plus
                    (B) amounts paid or incurred for start-up 
                expenditures (as defined in section 195(c)) in 
                connection with a qualified recovery zone trade or 
                business.
            (3) Qualified recovery zone trade or business.--The term 
        ``qualified recovery zone trade or business'' means--
                    (A) any commercial or charter fishing business 
                operating in the recovery zone, or
                    (B) any hotel, lodging, recreation, entertainment, 
                or restaurant business located in the recovery zone.
    (d) Reduction in Basis.--For purposes of section 1016 of the 
Internal Revenue Code of 1986, the basis in any qualified investment 
shall be reduced (but not below zero) by an amount equal to the amount 
that bears the same ratio to such basis (determined without regard to 
this subsection) as the amount of qualified Gulf oil spill payments 
received by the taxpayer bears to the amount of qualified investments 
made by the taxpayer with respect to such qualified Gulf oil spill 
payments.
    (e) Effective Date.--This Act shall apply with respect to amounts 
received from any qualified Gulf oil spill payment and qualified 
investments made in taxable years ending after April 20, 2010.
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