II 

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. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Gulf Coast Oil Recov5 ery Zone Tax Relief and Economic Recovery Act’’. 

6 SEC. 2. RECOVERY ZONE; GULF OIL SPILL. 

7 For purposes of this Act— 


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1 (1) RECOVERY ZONE.—The term ‘‘Recovery 

2 Zone’’ means the following counties and parishes af3 fected by the Gulf oil spill: 

4 (A) The counties of Escambia, Santa 

5 Rosa, Okaloosa, Walton, Bay, Gulf, Franklin, 

6 and Wakulla in the State of Florida. 

7 (B) The counties of Hancock, Harrison, 

8 and Jackson in the State of Mississippi. 

9 (C) The counties of Mobile and Baldwin in 

10 the State of Alabama. 

11 (D) The parishes of Orleans, St. Tam12 many, St. Bernard, Plaquemines, Jefferson, 

13 Lafourche, Terrebonne, St. Mary, Iberia, 

14 Vermilion, and Cameron in the State of Lou15 isiana. 

16 (2) GULF OIL SPILL.—The term ‘‘Gulf oil spill’’ 

17 means the discharge of oil by reason of the explosion 

18 on, and sinking of, the mobile offshore drilling unit 

19 Deepwater Horizon. 

20 SEC. 3. NON-RECOGNITION OF INCOME FROM INSURANCE 

21 PROCEEDS WHICH ARE REINVESTED IN THE 

22 RECOVERY ZONE. 

23 (a) IN GENERAL.—For purposes of the Internal Rev24 enue Code of 1986, amounts received from any qualified 

25 Gulf oil spill payment shall be recognized only to the exVerDate Mar 15 2010 01:33 Sep 18, 2013 Jkt 029200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1506.IS S1506

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1 tent that the amount realized exceeds the qualified invest2 ments made by the taxpayer with respect to such qualified 

3 Gulf oil spill payment. 

4 (b) QUALIFIED GULF OIL SPILL PAYMENT.—For 

5 purposes of this section, the term ‘‘qualified Gulf oil spill 

6 payment’’ means— 

7 (1) any proceeds or payments from insurance 

8 received in connection with the Gulf oil spill, or 

9 (2) any payment for damages attributable to 

10 the Gulf oil spill under section 1002 of the Oil Pollu11 tion Act of 1990 (33 U.S.C. 2702). 

12 (c) QUALIFIED INVESTMENT.—For purposes of this 

13 section— 

14 (1) IN GENERAL.—The term ‘‘qualified invest15 ment’’ means, with respect to any qualified Gulf oil 

16 spill payment, the sum of the qualified recovery zone 

17 investments which are made by the taxpayer before 

18 the date which is 5 years after the later of— 

19 (A) the date of the qualified Gulf oil spill 

20 payment, or 

21 (B) the date of the enactment of this Act. 

22 (2) QUALIFIED RECOVERY ZONE INVEST23 MENT.—The term ‘‘qualified recovery zone invest24 ment’’ means the sum of— 


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1 (A) amounts paid or incurred for tangible 

2 property (to which section 168 of the Internal 

3 Revenue Code of 1986 applies) acquired by pur4 chase (within the meaning of section 179(d)(2) 

5 of such Code) for use in the active conduct of 

6 a recovery zone trade or business property, plus 

7 (B) amounts paid or incurred for start-up 

8 expenditures (as defined in section 195(c)) in 

9 connection with a qualified recovery zone trade 

10 or business. 

11 (3) QUALIFIED RECOVERY ZONE TRADE OR

12 BUSINESS.—The term ‘‘qualified recovery zone trade 

13 or business’’ means— 

14 (A) any commercial or charter fishing busi15 ness operating in the recovery zone, or 

16 (B) any hotel, lodging, recreation, enter17 tainment, or restaurant business located in the 

18 recovery zone. 

19 (d) REDUCTION IN BASIS.—For purposes of section 

20 1016 of the Internal Revenue Code of 1986, the basis in 

21 any qualified investment shall be reduced (but not below 

22 zero) by an amount equal to the amount that bears the 

23 same ratio to such basis (determined without regard to 

24 this subsection) as the amount of qualified Gulf oil spill 

25 payments received by the taxpayer bears to the amount 


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1 of qualified investments made by the taxpayer with respect 

2 to such qualified Gulf oil spill payments. 

3 (e) EFFECTIVE DATE.—This Act shall apply with re4 spect to amounts received from any qualified Gulf oil spill 

5 payment and qualified investments made in taxable years 

6 ending after April 20, 2010. 

Æ 


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