II

104TH CONGRESS

2D SESSION S. 1911

To amend the Internal Revenue Code of 1986 to encourage economic development through the creation of additional empowerment zones and enterprise communities and to encourage the cleanup of contaminated

brownfield sites.

IN THE SENATE OF THE UNITED STATES

JUNE 27, 1996

Ms. MOSELEY-BRAUN (for herself and Mr. JEFFORDS) 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 encourage

economic development through the creation of additional

empowerment zones and enterprise communities and to

encourage the cleanup of contaminated brownfield sites.

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

3 SECTION 1. AMENDMENT OF 1986 CODE.

4 Except as otherwise expressly provided, whenever in

5 this Act an amendment or repeal is expressed in terms

6 of an amendment to, or repeal of, a section or other provi7 sion, the reference shall be considered to be made to a
2

•S 1911 IS

1 section or other provision of the Internal Revenue Code

2 of 1986.

3 TITLE I—ADDITIONAL

4 EMPOWERMENT ZONES

5 SEC. 101. ADDITIONAL EMPOWERMENT ZONES.

6 (a) IN GENERAL.—Paragraph (2) of section 1391(b)

7 (relating to designations of empowerment zones and enter8 prise communities) is amended—

9 (1) by striking ‘‘9’’ and inserting ‘‘11’’,

10 (2) by striking ‘‘6’’ and inserting ‘‘8’’, and

11 (3) by striking ‘‘750,000’’ and inserting

12 ‘‘1,000,000’’.

13 (b) EFFECTIVE DATE.—The amendments made by

14 this section shall take effect on the date of the enactment

15 of this Act, except that designations of new empowerment

16 zones made pursuant to such amendments shall be made

17 during the 180-day period beginning on the date of the

18 enactment of this Act.

19 TITLE II—NEW EMPOWERMENT

20 ZONES AND ENTERPRISE

21 COMMUNITIES

22 SEC. 201. DESIGNATION OF ADDITIONAL EMPOWERMENT

23 ZONES AND ENTERPRISE COMMUNITIES.

24 (a) IN GENERAL.—Section 1391 (relating to designa25 tion procedure for empowerment zones and enterprise
3

•S 1911 IS

1 communities) is amended by adding at the end the follow2 ing new subsection:

3 ‘‘(g) ADDITIONAL DESIGNATIONS PERMITTED.—

4 ‘‘(1) IN GENERAL.—In addition to the areas

5 designated under subsection (a)—

6 ‘‘(A) ENTERPRISE COMMUNITIES.—The

7 appropriate Secretaries may designate in the

8 aggregate an additional 80 nominated areas as

9 enterprise communities under this section, sub10 ject to the availability of eligible nominated

11 areas. Of that number, not more than 50 may

12 be designated in urban areas and not more

13 than 30 may be designated in rural areas.

14 ‘‘(B) EMPOWERMENT ZONES.—The appro15 priate Secretaries may designate in the aggre16 gate an additional 20 nominated areas as

17 empowerment zones under this section, subject

18 to the availability of eligible nominated areas.

19 Of that number, not more than 15 may be des20 ignated in urban areas and not more than 5

21 may be designated in rural areas.

22 ‘‘(2) PERIOD DESIGNATIONS MAY BE MADE.—A

23 designation may be made under this subsection after

24 the date of the enactment of this subsection and be25 fore January 1, 1998.
4

•S 1911 IS

1 ‘‘(3) MODIFICATIONS TO ELIGIBILITY CRITERIA,

2 ETC.—

3 ‘‘(A) POVERTY RATE REQUIREMENT.—

4 ‘‘(i) IN GENERAL.—A nominated area

5 shall be eligible for designation under this

6 subsection only if the poverty rate for each

7 population census tract within the nomi8 nated area is not less than 20 percent and

9 the poverty rate for at least 90 percent of

10 the population census tracts within the

11 nominated area is not less than 25 per12 cent.

13 ‘‘(ii) TREATMENT OF CENSUS TRACTS

14 WITH SMALL POPULATIONS.—A population

15 census tract with a population of less than

16 2,000 shall be treated as having a poverty

17 rate of not less than 25 percent if—

18 ‘‘(I) more than 75 percent of

19 such tract is zoned for commercial or

20 industrial use, and

21 ‘‘(II) such tract is contiguous to

22 1 or more other population census

23 tracts which have a poverty rate of

24 not less than 25 percent (determined

25 without regard to this clause).
5

•S 1911 IS

1 ‘‘(iii) EXCEPTION FOR DEVELOPABLE

2 SITES.—Clause (i) shall not apply to up to

3 3 noncontiguous parcels in a nominated

4 area which may be developed for commer5 cial or industrial purposes. The aggregate

6 area of noncontiguous parcels to which the

7 preceding sentence applies with respect to

8 any nominated area shall not exceed 1,000

9 acres (2,000 acres in the case of an

10 empowerment zone).

11 ‘‘(iv) CERTAIN PROVISIONS NOT TO

12 APPLY.—Section 1392(a)(4) (and so much

13 of paragraphs (1) and (2) of section

14 1392(b) as relate to section 1392(a)(4))

15 shall not apply to an area nominated for

16 designation under this subsection.

17 ‘‘(v) SPECIAL RULE FOR RURAL

18 EMPOWERMENT ZONES AND ENTERPRISE

19 COMMUNITIES.—The Secretary of Agri20 culture may designate not more than 1

21 empowerment zone, and not more than 5

22 enterprise communities, in rural areas

23 without regard to clause (i) if such areas

24 satisfy emigration criteria specified by the

25 Secretary of Agriculture.
6

•S 1911 IS

1 ‘‘(B) SIZE LIMITATION.—

2 ‘‘(i) IN GENERAL.—The parcels de3 scribed in subparagraph (A)(iii) shall not

4 be taken into account in determining

5 whether the requirement of subparagraph

6 (A) or (B) of section 1392(a)(3) is met.

7 ‘‘(ii) SPECIAL RULE FOR RURAL

8 AREAS.—If a population census tract (or

9 equivalent division under section

10 1392(b)(4)) in a rural area exceeds 1,000

11 square miles or includes a substantial

12 amount of land owned by the Federal,

13 State, or local government, the nominated

14 area may exclude such excess square mile15 age or governmentally owned land and the

16 exclusion of that area will not be treated

17 as violating the continuous boundary re18 quirement of section 1392(a)(3)(B).

19 ‘‘(C) AGGREGATE POPULATION LIMITA20 TION.—The aggregate population limitation

21 under the last sentence of subsection (b)(2)

22 shall not apply to a designation under para23 graph (1)(B).

24 ‘‘(D) PREVIOUSLY DESIGNATED ENTER25 PRISE COMMUNITIES MAY BE INCLUDED.—Sub-
7

•S 1911 IS

1 section (e)(5) shall not apply to any enterprise

2 community designated under subsection (a) that

3 is also nominated for designation under this

4 subsection.

5 ‘‘(E) INDIAN RESERVATIONS MAY BE NOM6 INATED.—

7 ‘‘(i) IN GENERAL.—Section 1393(a)(4)

8 shall not apply to an area nominated for

9 designation under this subsection.

10 ‘‘(ii) SPECIAL RULE.—An area in an

11 Indian reservation shall be treated as nom12 inated by a State and a local government

13 if it is nominated by the reservation gov14 erning body (as determined by the Sec15 retary of Interior).’’

16 (b) EMPLOYMENT CREDIT NOT TO APPLY TO NEW

17 EMPOWERMENT ZONES.—Section 1396 (relating to

18 empowerment zone employment credit) is amended by

19 adding at the end the following new subsection:

20 ‘‘(e) CREDIT NOT TO APPLY TO EMPOWERMENT

21 ZONES DESIGNATED UNDER SECTION 1391(g).—This

22 section shall be applied without regard to any

23 empowerment zone designated under section 1391(g).’’

24 (c) INCREASED EXPENSING UNDER SECTION 179

25 NOT TO APPLY IN DEVELOPABLE SITES.—Section 1397A
8

•S 1911 IS

1 (relating to increase in expensing under section 179) is

2 amended by adding at the end the following new sub3 section:

4 ‘‘(c) LIMITATION.—For purposes of this section,

5 qualified zone property shall not include any property sub6 stantially all of the use of which is in any parcel described

7 in section 1391(g)(3)(A)(iii).’’

8 (d) CONFORMING AMENDMENTS.—

9 (1) Subsections (e) and (f) of section 1391 are

10 each amended by striking ‘‘subsection (a)’’ and in11 serting ‘‘this section’’.

12 (2) Section 1391(c) is amended by striking

13 ‘‘this section’’ and inserting ‘‘subsection (a)’’.

14 SEC. 202. VOLUME CAP NOT TO APPLY TO ENTERPRISE

15 ZONE FACILITY BONDS WITH RESPECT TO

16 NEW EMPOWERMENT ZONES.

17 (a) IN GENERAL.—Section 1394 (relating to tax-ex18 empt enterprise zone facility bonds) is amended by adding

19 at the end the following new subsection:

20 ‘‘(f) BONDS FOR EMPOWERMENT ZONES DES21 IGNATED UNDER SECTION 1391(g).—

22 ‘‘(1) IN GENERAL.—In the case of a new

23 empowerment zone facility bond—
9

•S 1911 IS

1 ‘‘(A) such bond shall not be treated as a

2 private activity bond for purposes of section

3 146, and

4 ‘‘(B) subsection (c) of this section shall not

5 apply.

6 ‘‘(2) LIMITATION ON AMOUNT OF BONDS.—

7 ‘‘(A) IN GENERAL.—Paragraph (1) shall

8 apply to a new empowerment zone facility bond

9 only if such bond is designated for purposes of

10 this subsection by the local government which

11 nominated the area to which such bond relates.

12 ‘‘(B) LIMITATION ON BONDS DES13 IGNATED.—The aggregate face amount of

14 bonds which may be designated under subpara15 graph (A) with respect to any empowerment

16 zone shall not exceed—

17 ‘‘(i) $60,000,000 if such zone is in a

18 rural area,

19 ‘‘(ii) $130,000,000 if such zone is in

20 an urban area and the zone has a popu21 lation of less than 100,000, and

22 ‘‘(iii) $230,000,000 if such zone is in

23 an urban area and the zone has a popu24 lation of at least 100,000.

25 ‘‘(C) SPECIAL RULES.—
10

•S 1911 IS

1 ‘‘(i) COORDINATION WITH LIMITATION

2 IN SUBSECTION (c).—Bonds to which para3 graph (1) applies shall not be taken into

4 account in applying the limitation of sub5 section (c) to other bonds.

6 ‘‘(ii) CURRENT REFUNDING NOT

7 TAKEN INTO ACCOUNT.—In the case of a

8 refunding (or series of refundings) of a

9 bond designated under this paragraph, the

10 refunding obligation shall be treated as

11 designated under this paragraph (and shall

12 not be taken into account in applying sub13 paragraph (B)) if—

14 ‘‘(I) the amount of the refunding

15 bond does not exceed the outstanding

16 amount of the refunded bond, and

17 ‘‘(II) the refunded bond is re18 deemed not later than 90 days after

19 the date of issuance of the refunding

20 bond.

21 ‘‘(3) NEW EMPOWERMENT ZONE FACILITY

22 BOND.—For purposes of this subsection, the term

23 ‘new empowerment zone facility bond’ means any

24 bond which would be described in subsection (a) if

25 only empowerment zones designated under section
11

•S 1911 IS

1 1391(g) were taken into account under sections

2 1397B and 1397C.’’

3 (b) EFFECTIVE DATE.—The amendment made by

4 this section shall apply to obligations issued after the date

5 of the enactment of this Act.

6 SEC. 203. MODIFICATIONS TO ENTERPRISE ZONE FACILITY

7 BOND RULES FOR ALL EMPOWERMENT

8 ZONES AND ENTERPRISE COMMUNITIES.

9 (a) MODIFICATIONS RELATING TO ENTERPRISE

10 ZONE BUSINESS.—Paragraph (3) of section 1394(b) (de11 fining enterprise zone business) is amended to read as fol12 lows:

13 ‘‘(3) ENTERPRISE ZONE BUSINESS.—

14 ‘‘(A) IN GENERAL.—Except as modified in

15 this paragraph, the term ‘enterprise zone busi16 ness’ has the meaning given such term by sec17 tion 1397B.

18 ‘‘(B) MODIFICATIONS.—In applying sec19 tion 1397B for purposes of this section—

20 ‘‘(i) BUSINESSES IN ENTERPRISE

21 COMMUNITIES ELIGIBLE.—References in

22 section 1397B to empowerment zones shall

23 be treated as including references to enter24 prise communities.
12

•S 1911 IS

1 ‘‘(ii) WAIVER OF REQUIREMENTS

2 DURING STARTUP PERIOD.—A business

3 shall not fail to be treated as an enterprise

4 zone business during the startup period

5 if—

6 ‘‘(I) as of the beginning of the

7 startup period, it is reasonably ex8 pected that such business will be an

9 enterprise zone business (as defined in

10 section 1397B as modified by this

11 paragraph) at the end of such period,

12 and

13 ‘‘(II) such business makes bona

14 fide efforts to be such a business.

15 ‘‘(iii) REDUCED REQUIREMENTS

16 AFTER TESTING PERIOD.—A business shall

17 not fail to be treated as an enterprise zone

18 business for any taxable year beginning

19 after the testing period by reason of failing

20 to meet any requirement of subsection (b)

21 or (c) of section 1397B if at least 35 per22 cent of the employees of such business for

23 such year are residents of an empowerment

24 zone or an enterprise community. The pre25 ceding sentence shall not apply to any
13

•S 1911 IS

1 business which is not a qualified business

2 by reason of paragraph (1), (4), or (5) of

3 section 1397B(d).

4 ‘‘(C) DEFINITIONS RELATING TO SUBPARA5 GRAPH (B).—For purposes of subparagraph

6 (B)—

7 ‘‘(i) STARTUP PERIOD.—The term

8 ‘startup period’ means, with respect to any

9 property being provided for any business,

10 the period before the first taxable year be11 ginning more than 2 years after the later

12 of—

13 ‘‘(I) the date of issuance of the

14 issue providing such property, or

15 ‘‘(II) the date such property is

16 first placed in service after such issu17 ance (or, if earlier, the date which is

18 3 years after the date described in

19 subclause (I)).

20 ‘‘(ii) TESTING PERIOD.—The term

21 ‘testing period’ means the first 3 taxable

22 years beginning after the startup period.

23 ‘‘(D) PORTIONS OF BUSINESS MAY BE EN24 TERPRISE ZONE BUSINESS.—The term ‘enter25 prise zone business’ includes any trades or busi-
14

•S 1911 IS

1 nesses which would qualify as an enterprise

2 zone business (determined after the modifica3 tions of subparagraph (B)) if such trades or

4 businesses were separately incorporated.’’

5 (b) MODIFICATIONS RELATING TO QUALIFIED ZONE

6 PROPERTY.—Paragraph (2) of section 1394(b) (defining

7 qualified zone property) is amended to read as follows:

8 ‘‘(2) QUALIFIED ZONE PROPERTY.—The term

9 ‘qualified zone property’ has the meaning given such

10 term by section 1397C; except that—

11 ‘‘(A) the references to empowerment zones

12 shall be treated as including references to enter13 prise communities, and

14 ‘‘(B) section 1397C(a)(2) shall be applied

15 by substituting ‘an amount equal to 15 percent

16 of the adjusted basis’ for ‘an amount equal to

17 the adjusted basis’.’’

18 (c) EFFECTIVE DATE.—The amendments made by

19 this section shall apply to obligations issued after the date

20 of the enactment of this Act.

21 SEC. 204. MODIFICATIONS TO ENTERPRISE ZONE BUSINESS

22 DEFINITION FOR ALL EMPOWERMENT ZONES

23 AND ENTERPRISE COMMUNITIES.

24 (a) IN GENERAL.—Section 1397B (defining enter25 prise zone business) is amended—
15

•S 1911 IS

1 (1) by striking ‘‘80 percent’’ in subsections

2 (b)(2) and (c)(1) and inserting ‘‘50 percent’’,

3 (2) by striking ‘‘substantially all’’ each place it

4 appears in subsections (b) and (c) and inserting ‘‘a

5 substantial portion’’,

6 (3) by striking ‘‘, and exclusively related to,’’ in

7 subsections (b)(4) and (c)(3),

8 (4) by adding at the end of subsection (d)(2)

9 the following new flush sentence:

10 ‘‘For purposes of subparagraph (B), the lessor of

11 the property may rely on a lessee’s certification that

12 such lessee is an enterprise zone business.’’,

13 (5) by striking ‘‘substantially all’’ in subsection

14 (d)(3) and inserting ‘‘at least 50 percent’’, and

15 (6) by adding at the end the following new sub16 section:

17 ‘‘(f) TREATMENT OF BUSINESSES STRADDLING CEN18 SUS TRACT LINES.—For purposes of this section, if—

19 ‘‘(1) a business entity or proprietorship uses

20 real property located within an empowerment zone,

21 ‘‘(2) the business entity or proprietorship also

22 uses real property located outside the empowerment

23 zone,

24 ‘‘(3) the amount of real property described in

25 paragraph (1) is substantial compared to the
16

•S 1911 IS

1 amount of real property described in paragraph (2),

2 and

3 ‘‘(4) the real property described in paragraph

4 (2) is contiguous to part or all of the real property

5 described in paragraph (1),

6 then all the services performed by employees, all business

7 activities, all tangible property, and all intangible property

8 of the business entity or proprietorship that occur in or

9 is located on the real property described in paragraphs (1)

10 and (2) shall be treated as occurring or situated in an

11 empowerment zone.’’

12 (b) EFFECTIVE DATES.—

13 (1) IN GENERAL.—The amendments made by

14 this section shall apply to taxable years beginning on

15 or after the date of the enactment of this Act.

16 (2) SPECIAL RULE FOR ENTERPRISE ZONE FA17 CILITY BONDS.—For purposes of section 1394(b) of

18 the Internal Revenue Code of 1986, the amendments

19 made by this section shall apply to obligations issued

20 after the date of the enactment of this Act.
17

•S 1911 IS

1 TITLE III—EXPENSING OF ENVI2 RONMENTAL REMEDIATION

3 COSTS

4 SEC. 301. EXPENSING OF ENVIRONMENTAL REMEDIATION

5 COSTS.

6 (a) IN GENERAL.—Part VI of subchapter B of chap7 ter 1 is amended by adding at the end the following new

8 section:

9 ‘‘SEC. 198. EXPENSING OF ENVIRONMENTAL REMEDIATION

10 COSTS.

11 ‘‘(a) IN GENERAL.—A taxpayer may elect to treat

12 any qualified environmental remediation expenditure

13 which is paid or incurred by the taxpayer as an expense

14 which is not chargeable to capital account. Any expendi15 ture which is so treated shall be allowed as a deduction

16 for the taxable year in which it is paid or incurred.

17 ‘‘(b) QUALIFIED ENVIRONMENTAL REMEDIATION

18 EXPENDITURE.—For purposes of this section—

19 ‘‘(1) IN GENERAL.—The term ‘qualified envi20 ronmental remediation expenditure’ means any ex21 penditure—

22 ‘‘(A) which is otherwise chargeable to cap23 ital account, and
18

•S 1911 IS

1 ‘‘(B) which is paid or incurred in connec2 tion with the abatement or control of hazardous

3 substances at a qualified contaminated site.

4 ‘‘(2) SPECIAL RULE FOR EXPENDITURES FOR

5 DEPRECIABLE PROPERTY.—Such term shall not in6 clude any expenditure for the acquisition of property

7 of a character subject to the allowance for deprecia8 tion which is used in connection with the abatement

9 or control of hazardous substances at a qualified

10 contaminated site; except that the portion of the al11 lowance under section 167 for such property which

12 is otherwise allocated to such site shall be treated as

13 a qualified environmental remediation expenditure.

14 ‘‘(c) QUALIFIED CONTAMINATED SITE.—For pur15 poses of this section—

16 ‘‘(1) QUALIFIED CONTAMINATED SITE.—

17 ‘‘(A) IN GENERAL.—The term ‘qualified

18 contaminated site’ means any area—

19 ‘‘(i) which is held by the taxpayer for

20 use in a trade or business or for the pro21 duction of income, or which is property de22 scribed in section 1221(1) in the hands of

23 the taxpayer,

24 ‘‘(ii) which is within a targeted area,

25 and
19

•S 1911 IS

1 ‘‘(iii) which contains (or potentially

2 contains) any hazardous substance.

3 ‘‘(B) TAXPAYER MUST RECEIVE STATE4 MENT FROM STATE ENVIRONMENTAL AGEN5 CY.—An area shall be treated as a qualified

6 contaminated site with respect to expenditures

7 paid or incurred during any taxable year only

8 if the taxpayer receives a statement from the

9 appropriate agency of the State in which such

10 area is located that such area meets the re11 quirements of clauses (ii) and (iii) of subpara12 graph (A).

13 ‘‘(C) APPROPRIATE STATE AGENCY.— For

14 purposes of subparagraph (B), the appropriate

15 agency of a State is the agency designated by

16 the Administrator of the Environmental Protec17 tion Agency for purposes of this section. If no

18 agency of a State is designated under the pre19 ceding sentence, the appropriate agency for

20 such State shall be the Environmental Protec21 tion Agency.

22 ‘‘(2) TARGETED AREA.—

23 ‘‘(A) IN GENERAL.—The term ‘targeted

24 area’ means—
20

•S 1911 IS

1 ‘‘(i) any population census tract with

2 a poverty rate of not less than 20 percent,

3 ‘‘(ii) a population census tract with a

4 population of less than 2,000 if—

5 ‘‘(I) more than 75 percent of

6 such tract is zoned for commercial or

7 industrial use, and

8 ‘‘(II) such tract is contiguous to

9 1 or more other population census

10 tracts which meet the requirement of

11 clause (i) without regard to this

12 clause,

13 ‘‘(iii) any empowerment zone or enter14 prise community (and any supplemental

15 zone designated on December 21, 1994),

16 and

17 ‘‘(iv) any site announced before Feb18 ruary 1, 1996, as being included as a

19 brownfields pilot project of the Environ20 mental Protection Agency.

21 ‘‘(B) NATIONAL PRIORITIES LISTED SITES

22 NOT INCLUDED.—Such term shall not include

23 any site which is on the national priorities list

24 under section 105(a)(8)(B) of the Comprehen25 sive Environmental Response, Compensation,
21

•S 1911 IS

1 and Liability Act of 1980 (as in effect on the

2 date of the enactment of this section).

3 ‘‘(C) CERTAIN RULES TO APPLY.—For

4 purposes of this paragraph, the rules of sections

5 1392(b)(4) and 1393(a)(9) shall apply.

6 ‘‘(D) TREATMENT OF CERTAIN SITES.—

7 For purposes of this paragraph, a single con8 taminated site shall be treated as within a tar9 geted area if—

10 ‘‘(i) a substantial portion of the site is

11 located within a targeted area described in

12 subparagraph (A) (determined without re13 gard to this subparagraph), and

14 ‘‘(ii) the remaining portions are con15 tiguous to, but outside, such targeted area.

16 ‘‘(d) HAZARDOUS SUBSTANCE.—For purposes of this

17 section—

18 ‘‘(1) IN GENERAL.—The term ‘hazardous sub19 stance’ means—

20 ‘‘(A) any substance which is a hazardous

21 substance as defined in section 101(14) of the

22 Comprehensive Environmental Response, Com23 pensation, and Liability Act of 1980, and
22

•S 1911 IS

1 ‘‘(B) any substance which is designated as

2 a hazardous substance under section 102 of

3 such Act.

4 ‘‘(2) EXCEPTION.—Such term shall not include

5 any substance with respect to which a removal or re6 medial action is not permitted under section 104 of

7 such Act by reason of subsection (a)(3) thereof.

8 ‘‘(e) DEDUCTION RECAPTURED AS ORDINARY IN9 COME ON SALE, ETC.—Solely for purposes of section

10 1245, in the case of property to which a qualified environ11 mental remediation expenditure would have been capital12 ized but for this section—

13 ‘‘(1) the deduction allowed by this section for

14 such expenditure shall be treated as a deduction for

15 depreciation, and

16 ‘‘(2) such property (if not otherwise section

17 1245 property) shall be treated as section 1245

18 property solely for purposes of applying section 1245

19 to such deduction.

20 ‘‘(f) COORDINATION WITH OTHER PROVISIONS.—

21 Sections 280B and 468 shall not apply to amounts which

22 are treated as expenses under this section.

23 ‘‘(g) REGULATIONS.—The Secretary shall prescribe

24 such regulations as may be necessary or appropriate to

25 carry out the purposes of this section.’’
23

•S 1911 IS

1 (b) CLERICAL AMENDMENT.—The table of sections

2 for part VI of subchapter B of chapter 1 is amended by

3 adding at the end the following new item:

‘‘Sec. 198. Expensing of environmental remediation costs.’’

4 (c) EFFECTIVE DATE.—The amendments made by

5 this section shall apply to expenditures paid or incurred

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

7 years ending after such date.

Æ