,,ii  #aaeth ,,congress  #b;d ,session  
,s4 #cbjf  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #ab1     
#bjah ,mr4 ,nelson introduced the       
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to amend the ,internal      
,revenue ,code of #aihf to provide tax  
relief to areas affected by toxic algal 
blooms4  #a4 ,short title  ,this ,act   
may be cited as the ,toxic ,algae ,tax  
,relief ,act4  #b4 ,toxic algae zone    
deduction  7a7 ,in general ,section #afe
 of the ,internal ,revenue ,code of     
#aihf is amended-- 7#a7 by redesignating
 subsection 7m7 as subsection 7n72 and  
7#b7 by inserting after subsection 7l7  
the following3  7m7 ,special deduction  
for losses attributable to a toxic algae
 zone  7#a7 ,in general ,notwithstanding
 any other provision of this section1 in
 the case of a taxpayer who operates a  
qualified trade or business in a toxic  
algae zone1 there shall be allowed as a 
deduction an amount equal to--  7,a7 the

 average qualified net profits of such  
trade or business during the period of  
the #c taxable years preceding the      
taxable year in which a qualified       
incident occurred1 minus  7,b7 the      
qualified net profits of such trade or  
business during the taxable year in     
which such qualified event occurred4    
7#b7 ,additional deduction ,the         
deduction allowed under this subsection 
shall be in addition to any deduction   
allowed under subsection 7a74  7#c7     
,year of election ,for purposes of the  
deduction allowed under this subsection1
 such deduction may1 at the election of 
the taxpayer1 be claimed in--  7,a7 the 
taxable year in which the qualified     
incident occurred1 or  7,b7 the taxable 
year immediately preceding the taxable  
year described in subparagraph 7,a74    
7#d7 ,definitions ,in this subsection3  
7,a7 ,qualified incident ,the term      
qualified incident means any act or     
event that exposes an area to toxic     
algal blooms1 as determined by the      

,secretary in consultation with the     
,national ,oceanic and ,atmospheric     
,administration4  7,b7 ,qualified net   
profits ,the term qualified net profits 
means the net profits of a qualified    
trade or business which is properly     
attributable to activities of such trade
 or business within a toxic algae zone4 
7,c7 ,qualified trade or business ,the  
term qualified trade or business means a
 trade or business that meets the gross 
receipts test under subsection 7c7 of   
section #ddh4  7,d7 ,state ,the term    
,state means any of the several ,states1
 the ,district of ,columbia1 or any     
territory or possession of the ,united  
,states4  7,e7 ,toxic algae zone  7i7   
,in general ,the term toxic algae zone  
means any census tract or political     
subdivision of a ,state which has been  
designated by the ,secretary1 in        
consultation with the ,national ,oceanic
 and ,atmospheric ,administration1 as   
experiencing economic hardship which is 
directly attributable to a qualified    

incident4  7ii7 ,limitation ,a census   
tract or political subdivision of a     
,state may not be designated as a toxic 
algae zone for a period of consecutive  
years in excess of #c years4  7,f7      
,toxic algal bloom ,the term toxic algal
 bloom means the existence of algae on  
or near the surface of water in         
quantities sufficient to cause anoxic   
conditions in such water4  4  7b7       
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjag4