II

107TH CONGRESS

1ST SESSION S. 1082

To amend the Internal Revenue Code of 1986 to expand the expensing

of environmental remediation costs.

IN THE SENATE OF THE UNITED STATES

JUNE 21, 2001

Mr. TORRICELLI (for himself and Mr. DAYTON) introduced the following bill;

which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to expand

the expensing of environmental remediation costs.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. EXPANSION OF EXPENSING OF ENVIRON4 MENTAL REMEDIATION COSTS.

5 (a) PROVISION MADE PERMANENT.—Section 198 of

6 the Internal Revenue Code of 1986 (relating to expensing

7 of environmental remediation costs) is amended by strik8 ing subsection (h).

9 (b) EXPANSION OF ELIGIBLE CONTAMINATES.—
2

•S 1082 IS

1 (1) IN GENERAL.—Section 198(c)(1)(B) of the

2 Internal Revenue Code of 1986 (defining qualified

3 contaminated site) is amended by striking ‘‘haz4 ardous substance’’ and inserting ‘‘hazardous or toxic

5 substance, or in which is located 1 or more struc6 tures in which such substance is found or of which

7 such substance is a part’’.

8 (2) HAZARDOUS OR TOXIC SUBSTANCE.—Sec9 tion 198(d)(1) of such Code (defining hazardous

10 substance) is amended—

11 (A) by inserting ‘‘or toxic’’ after ‘‘haz12 ardous’’ in the matter preceding subparagraph

13 (A),

14 (B) by striking ‘‘and’’ at the end of sub15 paragraph (A),

16 (C) by striking the period at the end of

17 subparagraph (B) and inserting a comma, and

18 (D) by adding at the end the following new

19 subparagraphs:

20 ‘‘(C) any substance which is listed as an

21 extremely hazardous substance under section

22 302(a) of the Emergency Planning and Com23 munity Right-to-Know Act of 1986, and

24 ‘‘(D) asbestos (whether friable or non-fri25 able), oil (as defined in section 1001(23) of the
3

•S 1082 IS

1 Oil Pollution Act of 1990), pesticide (as defined

2 in section 2(u) of the Federal Insecticide, Fun3 gicide, and Rodenticide Act), radon, and lead4 based paint (as defined in Lead: Requirements

5 for Disclosure of Known Lead-Based Paint and/

6 or Lead-Based Paint Hazards in Housing (61

7 Fed. Reg. 9062)).’’.

8 (3) CONFORMING AMENDMENTS.—

9 (A) Section 198(b)(2) of such Code is

10 amended by inserting ‘‘or toxic’’ after ‘‘haz11 ardous’.

12 (B) Section 198(d)(2) of such Code is

13 amended by striking ‘‘of such Act’’ and all that

14 follows and inserting ‘‘of the Comprehensive

15 Environmental Response, Compensation, and

16 Liability Act of 1980 by reason of subpara17 graph (A) or (C) of subsection (a)(3) thereof.’’.

18 (C) The heading for section 198(d) of such

19 Code is amended by inserting ‘‘OR TOXIC’’ after

20 ‘‘HAZARDOUS’’.

21 (c) ELIMINATION OF RECAPTURE ON SALE.—Section

22 198 of the Internal Revenue Code of 1986 is amended by

23 striking subsection (e) and by redesignating subsections

24 (f) and (g) as subsections (e) and (f), respectively.
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•S 1082 IS

1 (d) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to expenditures paid or incurred

3 after the date of the enactment of this Act, in taxable

4 years ending after such date.

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