S. 1506 — Introduced in Senate

II 113th CONGRESS 1st Session S. 1506 IN THE SENATE OF THE UNITED STATES September 17, 2013Mr. 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. 1. Short title This Act may be cited as the Gulf Coast Oil Recovery Zone Tax Relief and Economic Recovery Act. 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. 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.