,,ii  #aacth ,,congress  #ast ,session  
,s4 #aejf  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,september #ag1
 #bjac,mr4 ,wicker 7for himself and ,ms4
 ,landrieu7 introduced the following    
bill2 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 on1 and   
sinking of1 the mobile offshore drilling
 unit ,deepwater ,horizon4  #a4 ,short  
title ,this ,act may be cited as the    
,gulf ,coast ,oil ,recovery ,zone ,tax  
,relief and ,economic ,recovery ,act4   
#b4 ,recovery zone2 ,gulf oil spill ,for
 purposes of this ,act-- 7#a7 ,recovery 
zone ,the term ,recovery ,zone means the
 following counties and parishes        
affected by the ,gulf oil spill3 7,a7   
,the counties of ,escambia1 ,santa      
,rosa1 ,okaloosa1 ,walton1 ,bay1 ,gulf1 
,franklin1 and ,wakulla in the ,state of
 ,florida4  7,b7 ,the counties of       
,hancock1 ,harrison1 and ,jackson in the

 ,state of ,mississippi4  7,c7 ,the     
counties of ,mobile and ,baldwin in the 
,state of ,alabama4  7,d7 ,the parishes 
of ,orleans1 ,st4 ,tammany1 ,st4        
,bernard1 ,plaquemines1 ,jefferson1     
,lafourche1 ,terrebonne1 ,st4 ,mary1    
,iberia1 ,vermilion1 and ,cameron in the
 ,state of ,louisiana4  7#b7 ,gulf ,oil 
,spill ,the term ,gulf oil spill means  
the discharge of oil by reason of the   
explosion on1 and sinking of1 the mobile
 offshore drilling unit ,deepwater      
,horizon4  #c4 ,non-recognition of      
income from insurance proceeds which are
 reinvested in the recovery zone  7a7   
,in general ,for purposes of the        
,internal ,revenue ,code of #aihf1      
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 payment4  7b7 ,qualified ,gulf oil
 spill payment ,for purposes of this    

section1 the term qualified ,gulf oil   
spill payment means-- 7#a7 any proceeds 
or payments from insurance received in  
connection with the ,gulf oil spill1 or 
7#b7 any payment for damages            
attributable to the ,gulf oil spill     
under section #ajjb of the ,oil         
,pollution ,act of #aiij 7#cc ,u4,s4,c4 
#bgjb74  7c7 ,qualified investment ,for 
purposes of this section-- 7#a7 ,in     
general ,the term qualified investment  
means1 with respect to any qualified    
,gulf oil spill payment1 the sum of the 
qualified recovery zone investments     
which are made by the taxpayer before   
the date which is #e years after the    
later of-- 7,a7 the date of the         
qualified ,gulf oil spill payment1 or   
7,b7 the date of the enactment of this  
,act4  7#b7 ,qualified recovery zone    
investment ,the term qualified recovery 
zone investment means the sum of-- 7,a7 
amounts paid or incurred for tangible   
property 7to which section #afh of the  
,internal ,revenue ,code of #aihf       

applies7 acquired by purchase 7within   
the meaning of section #agi7;d77#b7 of  
such ,code7 for use in the active       
conduct of a recovery zone trade or     
business property1 plus  7,b7 amounts   
paid or incurred for start-up           
expenditures 7as defined in section     
#aie7;c77 in connection with a qualified
 recovery zone trade or business4  7#c7 
,qualified recovery zone trade or       
business ,the term qualified recovery   
zone trade or business means-- 7,a7 any 
commercial or charter fishing business  
operating in the recovery zone1 or  7,b7
 any hotel1 lodging1 recreation1        
entertainment1 or restaurant business   
located in the recovery zone4  7d7      
,reduction in basis ,for purposes of    
section #ajaf of the ,internal ,revenue 
,code of #aihf1 the basis in any        
qualified investment shall be reduced   
7but not below zero7 by an amount equal 
to the amount that bears the same ratio 
to such basis 7determined without regard
 to this subsection7 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 payments4  7e7
 ,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 #bj1  
#bjaj4