I 

111TH CONGRESS 

2D SESSION H. R. 5699 

To amend the Internal Revenue Code of 1986 to provide tax benefits for 

certain areas affected by the discharge of oil by reason of the explosion 

on, and sinking of, the mobile offshore drilling unit Deepwater Horizon, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 1, 2010 

Mr. MILLER of Florida (for himself, Mr. BONNER, and Mr. BOYD) introduced 

the following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

tax benefits for certain areas affected by the discharge 

of oil by reason of the explosion on, and sinking of, 

the mobile offshore drilling unit Deepwater Horizon, and 

for other purposes. 

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; ETC. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Gulf Oil Spill Recovery Act of 2010’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amendVerDate Mar 15 2010 00:08 Jul 07, 2010 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5699.IH H5699

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1 ment or repeal is expressed in terms of an amendment 

2 to, or repeal of, a section or other provision, the reference 

3 shall be considered to be made to a section or other provi4 sion of the Internal Revenue Code of 1986. 

5 (c) TABLE OF CONTENTS.—The table of contents of 

6 this Act is as follows: 

Sec. 1. Short title; etc. 

Sec. 2. Tax benefits for Gulf Oil Spill Recovery Zone. 

Sec. 3. Special extension of bonus depreciation placed in service date for taxpayers affected by the Gulf Oil Spill. 

Sec. 4. Gulf Coast Recovery Bonds. 

7 SEC. 2. TAX BENEFITS FOR GULF OIL SPILL RECOVERY 

8 ZONE. 

9 (a) IN GENERAL.—Subchapter Y of chapter 1 is 

10 amended by adding at the end the following new part: 

11 ‘‘PART IV—TAX BENEFITS FOR GULF OIL SPILL 

12 RECOVERY ZONE 

‘‘Sec. 1400V–1. Gulf Oil Spill Recovery Zone. 

‘‘Sec. 1400V–2. Tax benefits for Gulf Oil Spill Recovery Zone. 

‘‘Sec. 1400V–3. Housing tax benefits. 

‘‘Sec. 1400V–4. Special rules for use of retirement funds. 

‘‘Sec. 1400V–5. Employee Retention Credit for Employers Affected by Gulf Oil 

Spill. 

‘‘Sec. 1400V–6. Additional tax relief provisions. 

‘‘Sec. 1400V–7. Special rules for mortgage revenue bonds. 

13 ‘‘SEC. 1400V–1. GULF OIL SPILL RECOVERY ZONE. 

14 ‘‘For purposes of this part— 

15 ‘‘(1) GULF OIL SPILL RECOVERY ZONE.—The 

16 term ‘Gulf Oil Spill Recovery Zone’ means the fol17 lowing counties and parishes affected by the Gulf Oil 

18 Spill: 


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1 ‘‘(A) Terrebone, LaFourche, Jefferson, 

2 Plaquemines, St. Bernard, Orleans, and St. 

3 Tammany parishes in the State of Louisiana, 

4 ‘‘(B) Mobile and Baldwin counties in the 

5 State of Alabama, 

6 ‘‘(C) Hancock, Harrison, and Jackson 

7 counties in the State of Mississippi, and 

8 ‘‘(D) Escambia, Santa Rosa, Okaloosa, 

9 Walton, Bay, Holmes, Washington, Gulf, and 

10 Franklin counties in the State of Florida. 

11 ‘‘(2) GULF OIL SPILL.—The term ‘Gulf Oil 

12 Spill’ means the discharge of oil by reason of the ex13 plosion on, and sinking of, the mobile offshore drill14 ing unit Deepwater Horizon. 

15 ‘‘SEC. 1400V–2. TAX BENEFITS FOR GULF OIL SPILL RECOV16 ERY ZONE. 

17 ‘‘(a) TAX-EXEMPT BOND FINANCING.— 

18 ‘‘(1) IN GENERAL.—For purposes of this title— 

19 ‘‘(A) any qualified Gulf Oil Spill Recovery 

20 Zone Bond described in paragraph (2)(A)(i) 

21 shall be treated as an exempt facility bond, and 

22 ‘‘(B) any qualified Gulf Oil Spill Recovery 

23 Zone Bond described in paragraph (2)(A)(ii) 

24 shall be treated as a qualified mortgage bond. 


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1 ‘‘(2) QUALIFIED GULF OIL SPILL RECOVERY

2 ZONE BOND.—For purposes of this subsection, the 

3 term ‘qualified Gulf Oil Spill Recovery Zone Bond’ 

4 means any bond issued as part of an issue if— 

5 ‘‘(A)(i) 95 percent or more of the net pro6 ceeds (as defined in section 150(a)(3)) of such 

7 issue are to be used for qualified project costs, 

8 or 

9 ‘‘(ii) such issue meets the requirements of 

10 a qualified mortgage issue, except as otherwise 

11 provided in this subsection, 

12 ‘‘(B) such bond is issued by the State of 

13 Florida, Alabama, Louisiana, or Mississippi, or 

14 any political subdivision thereof, 

15 ‘‘(C) such bond is designated for purposes 

16 of this section by— 

17 ‘‘(i) in the case of a bond which is re18 quired under State law to be approved by 

19 the bond commission of such State, such 

20 bond commission, and 

21 ‘‘(ii) in the case of any other bond, 

22 the Governor of such State, 

23 ‘‘(D) such bond is issued after the date of 

24 the enactment of this section and before Janu25 ary 1, 2016, and 


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1 ‘‘(E) no portion of the proceeds of such 

2 issue is to be used to provide any property de3 scribed in section 144(c)(6)(B). 

4 ‘‘(3) LIMITATIONS ON BONDS.— 

5 ‘‘(A) AGGREGATE AMOUNT DESIGNATED.— 

6 The maximum aggregate face amount of bonds 

7 which may be designated under this subsection 

8 with respect to any State shall not exceed the 

9 product of $2,500 multiplied by the portion of 

10 the State population which is in the Gulf Oil 

11 Spill Recovery Zone (as determined on the basis 

12 of the most recent census estimate of resident 

13 population released by the Bureau of Census 

14 before April 20, 2010). 

15 ‘‘(B) MOVABLE PROPERTY.—No bonds 

16 shall be issued which are to be used for movable 

17 fixtures and equipment. 

18 ‘‘(4) QUALIFIED PROJECT COSTS.—For pur19 poses of this subsection, the term ‘qualified project 

20 costs’ means— 

21 ‘‘(A) the cost of any qualified residential 

22 rental project (as defined in section 142(d)) lo23 cated in the Gulf Oil Spill Recovery Zone, and 

24 ‘‘(B) the cost of acquisition, construction, 

25 reconstruction, and renovation of— 


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1 ‘‘(i) nonresidential real property (in2 cluding fixed improvements associated with 

3 such property) located in the Gulf Oil Spill 

4 Recovery Zone, and 

5 ‘‘(ii) public utility property (as defined 

6 in section 168(i)(10)) located in the Gulf 

7 Oil Spill Recovery Zone. 

8 ‘‘(5) SPECIAL RULES.—In applying this title to 

9 any qualified Gulf Oil Spill Recovery Zone Bond, the 

10 following modifications shall apply: 

11 ‘‘(A) Section 142(d)(1) (defining qualified 

12 residential rental project) shall be applied— 

13 ‘‘(i) by substituting ‘60 percent’ for 

14 ‘50 percent’ in subparagraph (A) thereof, 

15 and 

16 ‘‘(ii) by substituting ‘70 percent’ for 

17 ‘60 percent’ in subparagraph (B) thereof. 

18 ‘‘(B) Section 143 (relating to mortgage 

19 revenue bonds: qualified mortgage bond and 

20 qualified veterans’ mortgage bond) shall be ap21 plied— 

22 ‘‘(i) only with respect to owner-occu23 pied residences in the Gulf Oil Spill Recov24 ery Zone, 


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1 ‘‘(ii) by treating any such residence in 

2 the Gulf Oil Spill Recovery Zone as a tar3 geted area residence, 

4 ‘‘(iii) by applying subsection (f)(3) 

5 thereof without regard to subparagraph 

6 (A) thereof, and 

7 ‘‘(iv) by substituting ‘$150,000’ for 

8 ‘$15,000’ in subsection (k)(4) thereof. 

9 ‘‘(C) Except as provided in section 143, re10 payments of principal on financing provided by 

11 the issue of which such bond is a part may not 

12 be used to provide financing. 

13 ‘‘(D) Section 146 (relating to volume cap) 

14 shall not apply. 

15 ‘‘(E) Section 147(d)(2) (relating to acqui16 sition of existing property not permitted) shall 

17 be applied by substituting ‘50 percent’ for ‘15 

18 percent’ each place it appears. 

19 ‘‘(F) Section 148(f)(4)(C) (relating to ex20 ception from rebate for certain proceeds to be 

21 used to finance construction expenditures) shall 

22 apply to the available construction proceeds of 

23 bonds which are part of an issue described in 

24 paragraph (2)(A)(i). 


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1 ‘‘(G) Section 57(a)(5) (relating to tax-ex2 empt interest) shall not apply. 

3 ‘‘(6) SEPARATE ISSUE TREATMENT OF POR4 TIONS OF AN ISSUE.—This subsection shall not 

5 apply to the portion of an issue which (if issued as 

6 a separate issue) would be treated as a qualified 

7 bond or as a bond that is not a private activity bond 

8 (determined without regard to paragraph (1)), if the 

9 issuer elects to so treat such portion. 

10 ‘‘(b) ADVANCE REFUNDINGS OF CERTAIN TAX-EX11 EMPT BONDS.— 

12 ‘‘(1) IN GENERAL.—With respect to a bond de13 scribed in paragraph (3), one additional advance re14 funding after the date of the enactment of this sec15 tion and before January 1, 2016, shall be allowed 

16 under the applicable rules of section 149(d) if— 

17 ‘‘(A) the Governor of the State designates 

18 the advance refunding bond for purposes of this 

19 subsection, and 

20 ‘‘(B) the requirements of paragraph (5) 

21 are met. 

22 ‘‘(2) CERTAIN PRIVATE ACTIVITY BONDS.— 

23 With respect to a bond described in paragraph (3) 

24 which is an exempt facility bond described in para25 graph (1) or (2) of section 142(a), one advance reVerDate Mar 15 2010 00:08 Jul 07, 2010 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H5699.IH H5699

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1 funding after the date of the enactment of this sec2 tion and before January 1, 2016, shall be allowed 

3 under the applicable rules of section 149(d) (not4 withstanding paragraph (2) thereof) if the require5 ments of subparagraphs (A) and (B) of paragraph 

6 (1) are met. 

7 ‘‘(3) BONDS DESCRIBED.—A bond is described 

8 in this paragraph if such bond was outstanding on 

9 April 20, 2010, and is issued by the State of Flor10 ida, Alabama, Louisiana, or Mississippi, or a polit11 ical subdivision thereof. 

12 ‘‘(4) AGGREGATE LIMIT.—The maximum aggre13 gate face amount of bonds which may be designated 

14 under this subsection by the Governor of a State 

15 shall not exceed— 

16 ‘‘(A) $4,500,000,000 in the case of the 

17 State of Florida, 

18 ‘‘(B) $4,500,000,000 in the case of the 

19 State of Louisiana, 

20 ‘‘(C) $4,500,000,000 in the case of the 

21 State of Mississippi, and 

22 ‘‘(D) $4,500,000,000 in the case of the 

23 State of Alabama. 

24 ‘‘(5) ADDITIONAL REQUIREMENTS.—The re25 quirements of this paragraph are met with respect 


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1 to any advance refunding of a bond described in 

2 paragraph (3) if— 

3 ‘‘(A) no advance refundings of such bond 

4 would be allowed under this title on or after 

5 April 20, 2010, 

6 ‘‘(B) the advance refunding bond is the 

7 only other outstanding bond with respect to the 

8 refunded bond, and 

9 ‘‘(C) the requirements of section 148 are 

10 met with respect to all bonds issued under this 

11 subsection. 

12 ‘‘(6) USE OF PROCEEDS REQUIREMENT.—This 

13 subsection shall not apply to any advance refunding 

14 of a bond which is issued as part of an issue if any 

15 portion of the proceeds of such issue (or any prior 

16 issue) was (or is to be) used to provide any property 

17 described in section 144(c)(6)(B). 

18 ‘‘(c) LOW-INCOME HOUSING CREDIT.— 

19 ‘‘(1) ADDITIONAL HOUSING CREDIT DOLLAR

20 AMOUNT FOR GULF OIL SPILL RECOVERY ZONE.— 

21 ‘‘(A) IN GENERAL.—For purposes of sec22 tion 42, in the case of calendar years 2010, 

23 2011, and 2012, the State housing credit ceil24 ing of each State, any portion of which is loVerDate Mar 15 2010 00:08 Jul 07, 2010 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H5699.IH H5699

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1 cated in the Gulf Oil Spill Recovery Zone, shall 

2 be increased by the lesser of— 

3 ‘‘(i) the aggregate housing credit dol4 lar amount allocated by the State housing 

5 credit agency of such State to buildings lo6 cated in the Gulf Oil Spill Recovery Zone 

7 for such calendar year, or 

8 ‘‘(ii) the Gulf Oil Spill Recovery hous9 ing amount for such State for such cal10 endar year. 

11 ‘‘(B) GULF OPPORTUNITY HOUSING

12 AMOUNT.—For purposes of subparagraph (A), 

13 the term ‘Gulf Oil Spill Recovery housing 

14 amount’ means, for any calendar year, the 

15 amount equal to the product of $18.00 multi16 plied by the portion of the State population 

17 which is in the Gulf Oil Spill Recovery Zone (as 

18 determined on the basis of the most recent cen19 sus estimate of resident population released by 

20 the Bureau of Census before April 20, 2010). 

21 ‘‘(C) ALLOCATIONS TREATED AS MADE

22 FIRST FROM ADDITIONAL ALLOCATION AMOUNT

23 FOR PURPOSES OF DETERMINING CARRY24 OVER.—For purposes of determining the un25 used State housing credit ceiling under section 


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1 42(h)(3)(C) for any calendar year, any increase 

2 in the State housing credit ceiling under sub3 paragraph (A) shall be treated as an amount 

4 described in clause (ii) of such section. 

5 ‘‘(2) DIFFICULT DEVELOPMENT AREA.— 

6 ‘‘(A) IN GENERAL.—For purposes of sec7 tion 42, in the case of property placed in service 

8 during 2011, 2012, or 2013, the Gulf Oil Spill 

9 Recovery Zone— 

10 ‘‘(i) shall be treated as difficult devel11 opment areas designated under subclause 

12 (I) of section 42(d)(5)(C)(iii), and 

13 ‘‘(ii) shall not be taken into account 

14 for purposes of applying the limitation 

15 under subclause (II) of such section. 

16 ‘‘(B) APPLICATION.—Subparagraph (A) 

17 shall apply only to— 

18 ‘‘(i) housing credit dollar amounts al19 located during the period beginning on 

20 January 1, 2011, and ending on December 

21 31, 2013, and 

22 ‘‘(ii) buildings placed in service during 

23 such period to the extent that paragraph 

24 (1) of section 42(h) does not apply to any 

25 building by reason of paragraph (4) thereVerDate Mar 15 2010 00:08 Jul 07, 2010 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H5699.IH H5699

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1 of, but only with respect to bonds issued 

2 after December 31, 2010. 

3 ‘‘(3) SPECIAL RULE FOR APPLYING INCOME

4 TESTS.—In the case of property placed in service— 

5 ‘‘(A) during 2011, 2012, or 2013, 

6 ‘‘(B) in the Gulf Oil Spill Recovery Zone, 

7 and 

8 ‘‘(C) in a nonmetropolitan area (as defined 

9 in section 42(d)(5)(C)(iv)(IV)), 

10 section 42 shall be applied by substituting ‘national 

11 nonmetropolitan median gross income (determined 

12 under rules similar to the rules of section 

13 142(d)(2)(B))’ for ‘area median gross income’ in 

14 subparagraphs (A) and (B) of section 42(g)(1). 

15 ‘‘(4) DEFINITIONS.—Any term used in this sub16 section which is also used in section 42 shall have 

17 the same meaning as when used in such section. 

18 ‘‘(d) SPECIAL ALLOWANCE FOR CERTAIN PROPERTY

19 ACQUIRED ON OR AFTER APRIL 20, 2010.— 

20 ‘‘(1) ADDITIONAL ALLOWANCE.—In the case of 

21 any qualified Gulf Oil Spill Recovery Zone prop22 erty— 

23 ‘‘(A) the depreciation deduction provided 

24 by section 167(a) for the taxable year in which 

25 such property is placed in service shall include 


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1 an allowance equal to 50 percent of the ad2 justed basis of such property, and 

3 ‘‘(B) the adjusted basis of the qualified 

4 Gulf Oil Spill Recovery Zone property shall be 

5 reduced by the amount of such deduction before 

6 computing the amount otherwise allowable as a 

7 depreciation deduction under this chapter for 

8 such taxable year and any subsequent taxable 

9 year. 

10 ‘‘(2) QUALIFIED GULF OIL SPILL RECOVERY

11 ZONE PROPERTY.—For purposes of this sub12 section— 

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

14 Gulf Oil Spill Recovery Zone property’ means 

15 property— 

16 ‘‘(i)(I) which is described in section 

17 168(k)(2)(A)(i), or 

18 ‘‘(II) which is nonresidential real 

19 property or residential rental property, 

20 ‘‘(ii) substantially all of the use of 

21 which is in the Gulf Oil Spill Recovery 

22 Zone and is in the active conduct of a 

23 trade or business by the taxpayer in such 

24 Zone, 


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1 ‘‘(iii) the original use of which in the 

2 Gulf Oil Spill Recovery Zone commences 

3 with the taxpayer on or after April 20, 

4 2010, 

5 ‘‘(iv) which is acquired by the tax6 payer by purchase (as defined in section 

7 179(d)) on or after April 20, 2010, but 

8 only if no written binding contract for the 

9 acquisition was in effect before April 20, 

10 2010, and 

11 ‘‘(v) which is placed in service by the 

12 taxpayer on or before December 31, 2012 

13 (December 31, 2013, in the case of non14 residential real property and residential 

15 rental property). 

16 ‘‘(B) EXCEPTIONS.— 

17 ‘‘(i) ALTERNATIVE DEPRECIATION

18 PROPERTY.—Such term shall not include 

19 any property described in section 

20 168(k)(2)(D)(i). 

21 ‘‘(ii) TAX-EXEMPT BOND-FINANCED

22 PROPERTY.—Such term shall not include 

23 any property any portion of which is fi24 nanced with the proceeds of any obligation 


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1 the interest on which is exempt from tax 

2 under section 103. 

3 ‘‘(iii) QUALIFIED REVITALIZATION

4 BUILDINGS.—Such term shall not include 

5 any qualified revitalization building with 

6 respect to which the taxpayer has elected 

7 the application of paragraph (1) or (2) of 

8 section 1400I(a). 

9 ‘‘(iv) ELECTION OUT.—If a taxpayer 

10 makes an election under this clause with 

11 respect to any class of property for any 

12 taxable year, this subsection shall not 

13 apply to all property in such class placed 

14 in service during such taxable year. 

15 ‘‘(3) SPECIAL RULES.—For purposes of this 

16 subsection, rules similar to the rules of subpara17 graph (E) of section 168(k)(2) shall apply, except 

18 that such subparagraph shall be applied— 

19 ‘‘(A) by substituting ‘April 20, 2010’ for 

20 ‘December 31, 2007’ each place it appears 

21 therein, 

22 ‘‘(B) by substituting ‘January 1, 2013’ for 

23 ‘January 1, 2010’ in clause (i) thereof, and 


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1 ‘‘(C) by substituting ‘qualified Gulf Oil 

2 Spill Recovery Zone property’ for ‘qualified 

3 property’ in clause (iv) thereof. 

4 ‘‘(4) ALLOWANCE AGAINST ALTERNATIVE MIN5 IMUM TAX.—For purposes of this subsection, rules 

6 similar to the rules of section 168(k)(2)(G) shall 

7 apply. 

8 ‘‘(5) RECAPTURE.—For purposes of this sub9 section, rules similar to the rules under section 

10 179(d)(10) shall apply with respect to any qualified 

11 Gulf Oil Spill Recovery Zone property which ceases 

12 to be qualified Gulf Oil Spill Recovery Zone prop13 erty. 

14 ‘‘(e) INCREASE IN EXPENSING UNDER SECTION

15 179.— 

16 ‘‘(1) IN GENERAL.—For purposes of section 

17 179— 

18 ‘‘(A) the dollar amount in effect under sec19 tion 179(b)(1) for the taxable year shall be in20 creased by the lesser of— 

21 ‘‘(i) $100,000, or 

22 ‘‘(ii) the cost of qualified section 179 

23 Gulf Oil Spill Recovery Zone property 

24 placed in service during the taxable year, 

25 and 


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1 ‘‘(B) the dollar amount in effect under sec2 tion 179(b)(2) for the taxable year shall be in3 creased by the lesser of— 

4 ‘‘(i) $600,000, or 

5 ‘‘(ii) the cost of qualified section 179 

6 Gulf Oil Spill Recovery Zone property 

7 placed in service during the taxable year. 

8 ‘‘(2) QUALIFIED SECTION 179 GULF OIL SPILL

9 RECOVERY ZONE PROPERTY.—For purposes of this 

10 subsection, the term ‘qualified section 179 Gulf Oil 

11 Spill Recovery Zone property’ means section 179 

12 property (as defined in section 179(d)) which is 

13 qualified Gulf Oil Spill Recovery Zone property (as 

14 defined in subsection (d)(2)). 

15 ‘‘(3) COORDINATION WITH EMPOWERMENT

16 ZONES AND RENEWAL COMMUNITIES.—For purposes 

17 of sections 1397A and 1400J, qualified section 179 

18 Gulf Oil Spill Recovery Zone property shall not be 

19 treated as qualified zone property or qualified re20 newal property, unless the taxpayer elects not to 

21 take such qualified section 179 Gulf Oil Spill Recov22 ery Zone property into account for purposes of this 

23 subsection. 

24 ‘‘(4) RECAPTURE.—For purposes of this sub25 section, rules similar to the rules under section 


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1 179(d)(10) shall apply with respect to any qualified 

2 section 179 Gulf Oil Spill Recovery Zone property 

3 which ceases to be qualified section 179 Gulf Oil 

4 Spill Recovery Zone property. 

5 ‘‘(f) EXPENSING FOR CERTAIN DEMOLITION AND

6 CLEAN-UP COSTS.— 

7 ‘‘(1) IN GENERAL.—A taxpayer may elect to 

8 treat 50 percent of any qualified Gulf Oil Spill Re9 covery Zone clean-up cost as an expense which is not 

10 chargeable to capital account. Any cost so treated 

11 shall be allowed as a deduction for the taxable year 

12 in which such cost is paid or incurred. 

13 ‘‘(2) QUALIFIED GULF OIL SPILL RECOVERY

14 ZONE CLEAN-UP COST.—For purposes of this sub15 section, the term ‘qualified Gulf Oil Spill Recovery 

16 Zone clean-up cost’ means any amount paid or in17 curred during the period beginning on April 20, 

18 2010, and ending on December 31, 2012, for the re19 moval of debris from, or the demolition of structures 

20 on, real property which is located in the Gulf Oil 

21 Spill Recovery Zone and which is— 

22 ‘‘(A) held by the taxpayer for use in a 

23 trade or business or for the production of in24 come, or 


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1 ‘‘(B) property described in section 

2 1221(a)(1) in the hands of the taxpayer. 

3 For purposes of the preceding sentence, amounts 

4 paid or incurred shall be taken into account only to 

5 the extent that such amount would (but for para6 graph (1)) be chargeable to capital account. 

7 ‘‘(g) EXTENSION OF EXPENSING FOR ENVIRON8 MENTAL REMEDIATION COSTS.—With respect to any 

9 qualified environmental remediation expenditure (as de10 fined in section 198(b)) paid or incurred on or after April 

11 20, 2010, in connection with a qualified contaminated site 

12 located in the Gulf Oil Spill Recovery Zone, section 198 

13 (relating to expensing of environmental remediation costs) 

14 shall be applied— 

15 ‘‘(1) in the case of expenditures paid or in16 curred on or after April 20, 2010, and before Janu17 ary 1, 2013, by substituting ‘December 31, 2012’ 

18 for the date contained in section 198(h), and 

19 ‘‘(2) except as provided in section 198(d)(2), by 

20 treating petroleum products (as defined in section 

21 4612(a)(3)) as a hazardous substance. 

22 ‘‘(h) INCREASE IN REHABILITATION CREDIT.—In the 

23 case of qualified rehabilitation expenditures (as defined in 

24 section 47(c)) paid or incurred during the period begin25 ning on April 20, 2010, and ending on December 31, 


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1 2013, with respect to any qualified rehabilitated building 

2 or certified historic structure (as defined in section 47(c)) 

3 located in the Gulf Oil Spill Recovery Zone, subsection (a) 

4 of section 47 (relating to rehabilitation credit) shall be ap5 plied— 

6 ‘‘(1) by substituting ‘13 percent’ for ‘10 per7 cent’ in paragraph (1) thereof, and 

8 ‘‘(2) by substituting ‘26 percent’ for ‘20 per9 cent’ in paragraph (2) thereof. 

10 ‘‘(i) TREATMENT OF NET OPERATING LOSSES AT11 TRIBUTABLE TO GULF OIL SPILL RECOVERY ZONE

12 LOSSES.— 

13 ‘‘(1) IN GENERAL.—If a portion of any net op14 erating loss of the taxpayer for any taxable year is 

15 a qualified Gulf Oil Spill Recovery Zone loss, the fol16 lowing rules shall apply: 

17 ‘‘(A) EXTENSION OF CARRYBACK PE18 RIOD.—Section 172(b)(1) shall be applied with 

19 respect to such portion— 

20 ‘‘(i) by substituting ‘5 taxable years’ 

21 for ‘2 taxable years’ in subparagraph 

22 (A)(i), and 

23 ‘‘(ii) by not taking such portion into 

24 account in determining any eligible loss of 


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1 the taxpayer under subparagraph (F) 

2 thereof for the taxable year. 

3 ‘‘(B) SUSPENSION OF 90 PERCENT AMT

4 LIMITATION.—Section 56(d)(1) shall be applied 

5 by increasing the amount determined under 

6 subparagraph (A)(ii)(I) thereof by the sum of 

7 the carrybacks and carryovers of any net oper8 ating loss attributable to such portion. 

9 ‘‘(2) QUALIFIED GULF OIL SPILL RECOVERY

10 ZONE LOSS.—For purposes of paragraph (1), the 

11 term ‘qualified Gulf Oil Spill Recovery Zone loss’ 

12 means the lesser of— 

13 ‘‘(A) the excess of— 

14 ‘‘(i) the net operating loss for such 

15 taxable year, over 

16 ‘‘(ii) the specified liability loss for 

17 such taxable year to which a 10-year 

18 carryback applies under section 

19 172(b)(1)(C), or 

20 ‘‘(B) the aggregate amount of the fol21 lowing deductions to the extent taken into ac22 count in computing the net operating loss for 

23 such taxable year: 

24 ‘‘(i) Any deduction for any qualified 

25 Gulf Oil Spill Recovery Zone casualty loss. 


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1 ‘‘(ii) Any deduction for moving ex2 penses paid or incurred after April 19, 

3 2010, and before January 1, 2014, and al4 lowable under this chapter to any taxpayer 

5 in connection with the employment of any 

6 individual— 

7 ‘‘(I) whose principal place of 

8 abode was located in the Gulf Oil Spill 

9 Recovery Zone before April 20, 2010, 

10 ‘‘(II) who was unable to remain 

11 in such abode as the result of the Gulf 

12 Oil Spill, and 

13 ‘‘(III) whose principal place of 

14 employment with the taxpayer after 

15 such expense is located in the Gulf Oil 

16 Spill Recovery Zone. 

17 For purposes of this clause, the term ‘mov18 ing expenses’ has the meaning given such 

19 term by section 217(b), except that the 

20 taxpayer’s former residence and new resi21 dence may be the same residence if the ini22 tial vacating of the residence was by rea23 son of the Gulf Oil Spill. 

24 ‘‘(iii) Any deduction allowable under 

25 this chapter for expenses paid or incurred 


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1 after April 19, 2010, and before January 

2 1, 2013, to temporarily house any em3 ployee of the taxpayer whose principal 

4 place of employment is in the Gulf Oil Spill 

5 Recovery Zone. 

6 ‘‘(iv) Any deduction for depreciation 

7 (or amortization in lieu of depreciation) al8 lowable under this chapter with respect to 

9 any qualified Gulf Oil Spill Recovery Zone 

10 property (as defined in subsection (d)(2), 

11 but without regard to subparagraph 

12 (B)(iv) thereof)) for the taxable year such 

13 property is placed in service. 

14 ‘‘(v) Any deduction allowable under 

15 this chapter for repair expenses (including 

16 expenses for removal of debris) paid or in17 curred after April 19, 2010, and before 

18 January 1, 2013, with respect to any dam19 age attributable to the Gulf Oil Spill and 

20 in connection with property which is lo21 cated in the Gulf Oil Spill Recovery Zone. 

22 ‘‘(3) QUALIFIED GULF OIL SPILL RECOVERY

23 ZONE CASUALTY LOSS.— 

24 ‘‘(A) IN GENERAL.—For purposes of para25 graph (2)(B)(i), the term ‘qualified Gulf Oil 


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1 Spill Recovery Zone casualty loss’ means any 

2 uncompensated section 1231 loss (as defined in 

3 section 1231(a)(3)(B)) of property located in 

4 the Gulf Oil Spill Recovery Zone if— 

5 ‘‘(i) such loss is allowed as a deduc6 tion under section 165 for the taxable 

7 year, and 

8 ‘‘(ii) such loss is by reason of the Gulf 

9 Oil Spill. 

10 ‘‘(B) REDUCTION FOR GAINS FROM INVOL11 UNTARY CONVERSION.—The amount of quali12 fied Gulf Oil Spill Recovery Zone casualty loss 

13 which would (but for this subparagraph) be 

14 taken into account under subparagraph (A) for 

15 any taxable year shall be reduced by the 

16 amount of any gain recognized by the taxpayer 

17 for such year from the involuntary conversion 

18 by reason of the Gulf Oil Spill of property lo19 cated in the Gulf Oil Spill Recovery Zone. 

20 ‘‘(C) COORDINATION WITH GENERAL DIS21 ASTER LOSS RULES.—Subsections (h) and (i) of 

22 section 165 shall not apply to any qualified 

23 Gulf Oil Spill Recovery Zone casualty loss to 

24 the extent such loss is taken into account under 

25 this subsection. 


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1 ‘‘(4) SPECIAL RULES.—For purposes of para2 graph (1), rules similar to the rules of paragraphs 

3 (2) and (3) of section 172(i) shall apply with respect 

4 to such portion. 

5 ‘‘(j) CREDIT TO HOLDERS OF GULF OIL SPILL RE6 COVERY TAX CREDIT BONDS.— 

7 ‘‘(1) ALLOWANCE OF CREDIT.—If a taxpayer 

8 holds a Gulf Oil Spill Recovery tax credit bond on 

9 one or more credit allowance dates of the bond oc10 curring during any taxable year, there shall be al11 lowed as a credit against the tax imposed by this 

12 chapter for the taxable year an amount equal to the 

13 sum of the credits determined under paragraph (2) 

14 with respect to such dates. 

15 ‘‘(2) AMOUNT OF CREDIT.— 

16 ‘‘(A) IN GENERAL.—The amount of the 

17 credit determined under this paragraph with re18 spect to any credit allowance date for a Gulf Oil 

19 Spill Recovery tax credit bond is 25 percent of 

20 the annual credit determined with respect to 

21 such bond. 

22 ‘‘(B) ANNUAL CREDIT.—The annual credit 

23 determined with respect to any Gulf Oil Spill 

24 Recovery tax credit bond is the product of— 


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1 ‘‘(i) the credit rate determined by the 

2 Secretary under subparagraph (C) for the 

3 day on which such bond was sold, multi4 plied by 

5 ‘‘(ii) the outstanding face amount of 

6 the bond. 

7 ‘‘(C) DETERMINATION.—For purposes of 

8 subparagraph (B), with respect to any Gulf Oil 

9 Spill Recovery tax credit bond, the Secretary 

10 shall determine daily or cause to be determined 

11 daily a credit rate which shall apply to the first 

12 day on which there is a binding, written con13 tract for the sale or exchange of the bond. The 

14 credit rate for any day is the credit rate which 

15 the Secretary or the Secretary’s designee esti16 mates will permit the issuance of Gulf Oil Spill 

17 Recovery tax credit bonds with a specified ma18 turity or redemption date without discount and 

19 without interest cost to the issuer. 

20 ‘‘(D) CREDIT ALLOWANCE DATE.—For 

21 purposes of this subsection, the term ‘credit al22 lowance date’ means March 15, June 15, Sep23 tember 15, and December 15. Such term also 

24 includes the last day on which the bond is out25 standing. 


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1 ‘‘(E) SPECIAL RULE FOR ISSUANCE AND

2 REDEMPTION.—In the case of a bond which is 

3 issued during the 3-month period ending on a 

4 credit allowance date, the amount of the credit 

5 determined under this paragraph with respect 

6 to such credit allowance date shall be a ratable 

7 portion of the credit otherwise determined 

8 based on the portion of the 3-month period dur9 ing which the bond is outstanding. A similar 

10 rule shall apply when the bond is redeemed or 

11 matures. 

12 ‘‘(3) LIMITATION BASED ON AMOUNT OF

13 TAX.—The credit allowed under paragraph (1) for 

14 any taxable year shall not exceed the excess of— 

15 ‘‘(A) the sum of the regular tax liability 

16 (as defined in section 26(b)) plus the tax im17 posed by section 55, over 

18 ‘‘(B) the sum of the credits allowable 

19 under part IV of subchapter A (other than sub20 part C and this subsection). 

21 ‘‘(4) GULF OIL SPILL RECOVERY TAX CREDIT

22 BOND.—For purposes of this subsection— 

23 ‘‘(A) IN GENERAL.—The term ‘Gulf Oil 

24 Spill Recovery tax credit bond’ means any bond 

25 issued as part of an issue if— 


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1 ‘‘(i) the bond is issued by the State of 

2 Florida, Alabama, Louisiana, or Mis3 sissippi, 

4 ‘‘(ii) 95 percent or more of the pro5 ceeds of such issue are to be used to— 

6 ‘‘(I) pay principal, interest, or 

7 premiums on qualified bonds issued 

8 by such State or any political subdivi9 sion of such State, or 

10 ‘‘(II) make a loan to any political 

11 subdivision of such State to pay prin12 cipal, interest, or premiums on quali13 fied bonds issued by such political 

14 subdivision, 

15 ‘‘(iii) the Governor of such State des16 ignates such bond for purposes of this sub17 section, 

18 ‘‘(iv) the bond is a general obligation 

19 of such State and is in registered form 

20 (within the meaning of section 149(a)), 

21 ‘‘(v) the maturity of such bond does 

22 not exceed 2 years, and 

23 ‘‘(vi) the bond is issued after Decem24 ber 31, 2010, and before January 1, 2013. 


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1 ‘‘(B) STATE MATCHING REQUIREMENT.—A 

2 bond shall not be treated as a Gulf Oil Spill Re3 covery tax credit bond unless— 

4 ‘‘(i) the issuer of such bond pledges as 

5 of the date of the issuance of the issue an 

6 amount equal to the face amount of such 

7 bond to be used for payments described in 

8 subclause (I) of subparagraph (A)(ii), or 

9 loans described in subclause (II) of such 

10 subparagraph, as the case may be, with re11 spect to the issue of which such bond is a 

12 part, and 

13 ‘‘(ii) any such payment or loan is 

14 made in equal amounts from the proceeds 

15 of such issue and from the amount pledged 

16 under clause (i). 

17 The requirement of clause (ii) shall be treated 

18 as met with respect to any such payment or 

19 loan made during the 1-year period beginning 

20 on the date of the issuance (or any successor 1- 

21 year period) if such requirement is met when 

22 applied with respect to the aggregate amount of 

23 such payments and loans made during such pe24 riod. 


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1 ‘‘(C) AGGREGATE LIMIT ON BOND DES2 IGNATIONS.—The maximum aggregate face 

3 amount of bonds which may be designated 

4 under this subsection by the Governor of a 

5 State shall not exceed— 

6 ‘‘(i) $200,000,000 in the case of the 

7 State of Florida, 

8 ‘‘(ii) $200,000,000 in the case of the 

9 State of Louisiana, 

10 ‘‘(iii) $100,000,000 in the case of the 

11 State of Mississippi, and 

12 ‘‘(iv) $50,000,000 in the case of the 

13 State of Alabama. 

14 ‘‘(D) SPECIAL RULES RELATING TO ARBI15 TRAGE.—A bond which is part of an issue shall 

16 not be treated as a Gulf Oil Spill Recovery tax 

17 credit bond unless, with respect to the issue of 

18 which the bond is a part, the issuer satisfies the 

19 arbitrage requirements of section 148 with re20 spect to proceeds of the issue and any loans 

21 made with such proceeds. 

22 ‘‘(5) QUALIFIED BOND.—For purposes of this 

23 subsection— 

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

25 bond’ means any obligation of a State or politVerDate Mar 15 2010 00:08 Jul 07, 2010 Jkt 089200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H5699.IH H5699

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1 ical subdivision thereof which was outstanding 

2 on April 20, 2010. 

3 ‘‘(B) EXCEPTION FOR PRIVATE ACTIVITY

4 BONDS.—Such term shall not include any pri5 vate activity bond. 

6 ‘‘(C) EXCEPTION FOR ADVANCE

7 REFUNDINGS.—Such term shall not include any 

8 bond with respect to which there is any out9 standing refunded or refunding bond during the 

10 period in which a Gulf Oil Spill Recovery tax 

11 credit bond is outstanding with respect to such 

12 bond. 

13 ‘‘(D) USE OF PROCEEDS REQUIREMENT.— 

14 Such term shall not include any bond issued as 

15 part of an issue if any portion of the proceeds 

16 of such issue was (or is to be) used to provide 

17 any property described in section 144(c)(6)(B). 

18 ‘‘(6) CREDIT INCLUDED IN GROSS INCOME.— 

19 Gross income includes the amount of the credit al20 lowed to the taxpayer under this subsection (deter21 mined without regard to paragraph (3)) and the 

22 amount so included shall be treated as interest in23 come. 

24 ‘‘(7) OTHER DEFINITIONS AND SPECIAL

25 RULES.—For purposes of this subsection— 


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1 ‘‘(A) BOND.—The term ‘bond’ includes 

2 any obligation. 

3 ‘‘(B) PARTNERSHIP; S CORPORATION; AND

4 OTHER PASS-THRU ENTITIES.— 

5 ‘‘(i) IN GENERAL.—Under regulations 

6 prescribed by the Secretary, in the case of 

7 a partnership, trust, S corporation, or 

8 other pass-thru entity, rules similar to the 

9 rules of section 41(g) shall apply with re10 spect to the credit allowable under para11 graph (1). 

12 ‘‘(ii) NO BASIS ADJUSTMENT.—In the 

13 case of a bond held by a partnership or an 

14 S corporation, rules similar to the rules 

15 under section 1397E(i) shall apply. 

16 ‘‘(C) BONDS HELD BY REGULATED IN17 VESTMENT COMPANIES.—If any Gulf Oil Spill 

18 Recovery tax credit bond is held by a regulated 

19 investment company, the credit determined 

20 under paragraph (1) shall be allowed to share21 holders of such company under procedures pre22 scribed by the Secretary. 

23 ‘‘(D) REPORTING.—Issuers of Gulf Oil 

24 Spill Recovery tax credit bonds shall submit reVerDate Mar 15 2010 00:08 Jul 07, 2010 Jkt 089200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\H5699.IH H5699

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1 ports similar to the reports required under sec2 tion 149(e). 

3 ‘‘(E) CREDIT TREATED AS NONREFUND4 ABLE BONDHOLDER CREDIT.—For purposes of 

5 this title, the credit allowed by this subsection 

6 shall be treated as a credit allowable under sub7 part H of part IV of subchapter A of this chap8 ter. 

9 ‘‘(k) APPLICATION OF NEW MARKETS TAX CREDIT

10 TO INVESTMENTS IN COMMUNITY DEVELOPMENT ENTI11 TIES SERVING GULF OIL SPILL RECOVERY ZONE.—For 

12 purposes of section 45D— 

13 ‘‘(1) a qualified community development entity 

14 shall be eligible for an allocation under subsection 

15 (f)(2) thereof of the increase in the new markets tax 

16 credit limitation described in paragraph (2) only if 

17 a significant mission of such entity is the recovery 

18 and redevelopment of the Gulf Oil Spill Recovery 

19 Zone, 

20 ‘‘(2) the new markets tax credit limitation oth21 erwise determined under subsection (f)(1) thereof 

22 shall be increased by an amount equal to— 

23 ‘‘(A) $300,000,000 for 2010 and 2011, to 

24 be allocated among qualified community devel25 opment entities to make qualified low-income 


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1 community investments within the Gulf Oil 

2 Spill Recovery Zone, and 

3 ‘‘(B) $400,000,000 for 2012, to be so allo4 cated, and 

5 ‘‘(3) subsection (f)(3) thereof shall be applied 

6 separately with respect to the amount of the increase 

7 under paragraph (2). 

8 ‘‘(l) TREATMENT OF REPRESENTATIONS REGARDING

9 INCOME ELIGIBILITY FOR PURPOSES OF QUALIFIED RES10 IDENTIAL RENTAL PROJECT REQUIREMENTS.—For pur11 poses of determining if any residential rental project meets 

12 the requirements of section 142(d)(1) and if any certifi13 cation with respect to such project meets the requirements 

14 under section 142(d)(7), the operator of the project may 

15 rely on the representations of any individual applying for 

16 tenancy in such project that such individual’s income will 

17 not exceed the applicable income limits of section 

18 142(d)(1) upon commencement of the individual’s tenancy 

19 if such tenancy begins during the 6-month period begin20 ning on and after the date such individual was displaced 

21 by reason of the Gulf Oil Spill. 

22 ‘‘(m) TREATMENT OF PUBLIC UTILITY PROPERTY

23 GULF OIL SPILL LOSSES.— 


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1 ‘‘(1) IN GENERAL.—Upon the election of the 

2 taxpayer, in the case of any eligible public utility 

3 property loss— 

4 ‘‘(A) section 165(i) shall be applied by sub5 stituting ‘the fifth taxable year immediately 

6 preceding’ for ‘the taxable year immediately 

7 preceding’, 

8 ‘‘(B) an application for a tentative 

9 carryback adjustment of the tax for any prior 

10 taxable year affected by the application of sub11 paragraph (A) may be made under section 

12 6411, and 

13 ‘‘(C) section 6611 shall not apply to any 

14 overpayment attributable to such loss. 

15 ‘‘(2) ELIGIBLE PUBLIC UTILITY PROPERTY

16 LOSS.—For purposes of this subsection— 

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

18 public utility property loss’ means any loss with 

19 respect to public utility property located in the 

20 Gulf Oil Spill Recovery Zone and attributable to 

21 the Gulf Oil Spill. 

22 ‘‘(B) PUBLIC UTILITY PROPERTY.—The 

23 term ‘public utility property’ has the meaning 

24 given such term by section 168(i)(10) without 


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1 regard to the matter following subparagraph 

2 (D) thereof. 

3 ‘‘(3) WAIVER OF LIMITATIONS.—If refund or 

4 credit of any overpayment of tax resulting from the 

5 application of paragraph (1) is prevented at any 

6 time before the close of the 1-year period beginning 

7 on the date of the enactment of this section by the 

8 operation of any law or rule of law (including res ju9 dicata), such refund or credit may nevertheless be 

10 made or allowed if claim therefor is filed before the 

11 close of such period. 

12 ‘‘(n) TAX BENEFITS NOT AVAILABLE WITH RE13 SPECT TO CERTAIN PROPERTY.— 

14 ‘‘(1) QUALIFIED GULF OIL SPILL RECOVERY

15 ZONE PROPERTY.—For purposes of subsections (d), 

16 (e), and (j)(2)(B)(iv), the term ‘qualified Gulf Oil 

17 Spill Recovery Zone property’ shall not include any 

18 property described in paragraph (3). 

19 ‘‘(2) QUALIFIED GULF OIL SPILL RECOVERY

20 ZONE CASUALTY LOSSES.—For purposes of sub21 section (j)(2)(B)(i), the term ‘qualified Gulf Oil Spill 

22 Recovery Zone casualty loss’ shall not include any 

23 loss with respect to any property described in para24 graph (3). 

25 ‘‘(3) PROPERTY DESCRIBED.— 


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1 ‘‘(A) IN GENERAL.—For purposes of this 

2 subsection, property is described in this para3 graph if such property is— 

4 ‘‘(i) any property used in connection 

5 with any private or commercial golf course, 

6 country club, massage parlor, hot tub facil7 ity, suntan facility, or any store the prin8 cipal business of which is the sale of alco9 holic beverages for consumption off prem10 ises, or 

11 ‘‘(ii) any gambling or animal racing 

12 property. 

13 ‘‘(B) GAMBLING OR ANIMAL RACING PROP14 ERTY.—For purposes of subparagraph (A)(ii)— 

15 ‘‘(i) IN GENERAL.—The term ‘gam16 bling or animal racing property’ means— 

17 ‘‘(I) any equipment, furniture, 

18 software, or other property used di19 rectly in connection with gambling, 

20 the racing of animals, or the on-site 

21 viewing of such racing, and 

22 ‘‘(II) the portion of any real 

23 property (determined by square foot24 age) which is dedicated to gambling, 


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1 the racing of animals, or the on-site 

2 viewing of such racing. 

3 ‘‘(ii) DE MINIMIS PORTION.—Clause 

4 (i)(II) shall not apply to any real property 

5 if the portion so dedicated is less than 100 

6 square feet. 

7 ‘‘SEC. 1400V–3. HOUSING TAX BENEFITS. 

8 ‘‘(a) EXCLUSION OF EMPLOYER PROVIDED HOUSING

9 FOR INDIVIDUAL AFFECTED BY GULF OIL SPILL.— 

10 ‘‘(1) IN GENERAL.—Gross income of a qualified 

11 employee shall not include the value of any lodging 

12 furnished in-kind to such employee (and such em13 ployee’s spouse or any of such employee’s depend14 ents) by or on behalf of a qualified employer for any 

15 month during the taxable year. 

16 ‘‘(2) LIMITATION.—The amount which may be 

17 excluded under paragraph (1) for any month for 

18 which lodging is furnished during the taxable year 

19 shall not exceed $600. 

20 ‘‘(3) TREATMENT OF EXCLUSION.—The exclu21 sion under paragraph (1) shall be treated as an ex22 clusion under section 119 (other than for purposes 

23 of sections 3121(a)(19) and 3306(b)(14)). 

24 ‘‘(b) EMPLOYER CREDIT FOR HOUSING EMPLOYEES

25 AFFECTED BY GULF OIL SPILL.—For purposes of section 


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1 38, in the case of a qualified employer, the Gulf Oil Spill 

2 housing credit for any month during the taxable year is 

3 an amount equal to 30 percent of any amount which is 

4 excludable from the gross income of a qualified employee 

5 of such employer under subsection (a) and not otherwise 

6 excludable under section 119. 

7 ‘‘(c) QUALIFIED EMPLOYEE.—For purposes of this 

8 section, the term ‘qualified employee’ means, with respect 

9 to any month, an individual— 

10 ‘‘(1) who had a principal residence (as defined 

11 in section 121) in the Gulf Oil Spill Recovery Zone 

12 on April 20, 2010, and 

13 ‘‘(2) who performs substantially all employment 

14 services— 

15 ‘‘(A) in the Gulf Oil Spill Recovery Zone, 

16 and 

17 ‘‘(B) for the qualified employer which fur18 nishes lodging to such individual. 

19 ‘‘(d) QUALIFIED EMPLOYER.—For purposes of this 

20 section, the term ‘qualified employer’ means any employer 

21 with a trade or business located in the Gulf Oil Spill Re22 covery Zone. 

23 ‘‘(e) CERTAIN RULES TO APPLY.—For purposes of 

24 this subsection, rules similar to the rules of sections 

25 51(i)(1) and 52 shall apply. 


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1 ‘‘(f) APPLICATION OF SECTION.—This section shall 

2 apply to lodging furnished during the period— 

3 ‘‘(1) beginning on the first day of the first 

4 month beginning after the date of the enactment of 

5 this section, and 

6 ‘‘(2) ending on the date which is 6 months after 

7 the first day described in paragraph (1). 

8 ‘‘SEC. 1400V–4. SPECIAL RULES FOR USE OF RETIREMENT 

9 FUNDS. 

10 ‘‘(a) TAX-FAVORED WITHDRAWALS FROM RETIRE11 MENT PLANS.— 

12 ‘‘(1) IN GENERAL.—Section 72(t) shall not 

13 apply to any qualified Gulf Oil Spill distribution. 

14 ‘‘(2) AGGREGATE DOLLAR LIMITATION.— 

15 ‘‘(A) IN GENERAL.—For purposes of this 

16 subsection, the aggregate amount of distribu17 tions received by an individual which may be 

18 treated as qualified Gulf Oil Spill distributions 

19 for any taxable year shall not exceed the excess 

20 (if any) of— 

21 ‘‘(i) $100,000, over 

22 ‘‘(ii) the aggregate amounts treated as 

23 qualified Gulf Oil Spill distributions re24 ceived by such individual for all prior tax25 able years. 


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1 ‘‘(B) TREATMENT OF PLAN DISTRIBU2 TIONS.—If a distribution to an individual would 

3 (without regard to subparagraph (A)) be a 

4 qualified Gulf Oil Spill distribution, a plan shall 

5 not be treated as violating any requirement of 

6 this title merely because the plan treats such 

7 distribution as a qualified Gulf Oil Spill dis8 tribution, unless the aggregate amount of such 

9 distributions from all plans maintained by the 

10 employer (and any member of any controlled 

11 group which includes the employer) to such in12 dividual exceeds $100,000. 

13 ‘‘(C) CONTROLLED GROUP.—For purposes 

14 of subparagraph (B), the term ‘controlled 

15 group’ means any group treated as a single em16 ployer under subsection (b), (c), (m), or (o) of 

17 section 414. 

18 ‘‘(3) AMOUNT DISTRIBUTED MAY BE REPAID.— 

19 ‘‘(A) IN GENERAL.—Any individual who 

20 receives a qualified Gulf Oil Spill distribution 

21 may, at any time during the 3-year period be22 ginning on the day after the date on which such 

23 distribution was received, make one or more 

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1 ble retirement plan of which such individual is 

2 a beneficiary and to which a rollover contribu3 tion of such distribution could be made under 

4 section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), 

5 or 457(e)(16), as the case may be. 

6 ‘‘(B) TREATMENT OF REPAYMENTS OF

7 DISTRIBUTIONS FROM ELIGIBLE RETIREMENT

8 PLANS OTHER THAN IRAS.—For purposes of 

9 this title, if a contribution is made pursuant to 

10 subparagraph (A) with respect to a qualified 

11 Gulf Oil Spill distribution from an eligible re12 tirement plan other than an individual retire13 ment plan, then the taxpayer shall, to the ex14 tent of the amount of the contribution, be treat15 ed as having received the qualified Gulf Oil 

16 Spill distribution in an eligible rollover distribu17 tion (as defined in section 402(c)(4)) and as 

18 having transferred the amount to the eligible 

19 retirement plan in a direct trustee to trustee 

20 transfer within 60 days of the distribution. 

21 ‘‘(C) TREATMENT OF REPAYMENTS FOR

22 DISTRIBUTIONS FROM IRAS.—For purposes of 

23 this title, if a contribution is made pursuant to 

24 subparagraph (A) with respect to a qualified 

25 Gulf Oil Spill distribution from an individual 


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1 retirement plan (as defined by section 

2 7701(a)(37)), then, to the extent of the amount 

3 of the contribution, the qualified Gulf Oil Spill 

4 distribution shall be treated as a distribution 

5 described in section 408(d)(3) and as having 

6 been transferred to the eligible retirement plan 

7 in a direct trustee to trustee transfer within 60 

8 days of the distribution. 

9 ‘‘(4) DEFINITIONS.—For purposes of this sub10 section— 

11 ‘‘(A) QUALIFIED GULF OIL SPILL DIS12 TRIBUTION.—Except as provided in paragraph 

13 (2), the term ‘qualified Gulf Oil Spill distribu14 tion’ means any distribution from an eligible re15 tirement plan made on or after April 20, 2010, 

16 and before January 1, 2012, to an individual 

17 whose principal place of abode on April 20, 

18 2010, is located in the Gulf Oil Spill Recovery 

19 Zone and who has sustained an economic loss 

20 by reason of the Gulf Oil Spill. 

21 ‘‘(B) ELIGIBLE RETIREMENT PLAN.—The 

22 term ‘eligible retirement plan’ shall have the 

23 meaning given such term by section 

24 402(c)(8)(B). 


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1 ‘‘(5) INCOME INCLUSION SPREAD OVER 3-YEAR

2 PERIOD.— 

3 ‘‘(A) IN GENERAL.—In the case of any 

4 qualified Gulf Oil Spill distribution, unless the 

5 taxpayer elects not to have this paragraph 

6 apply for any taxable year, any amount re7 quired to be included in gross income for such 

8 taxable year shall be so included ratably over 

9 the 3-taxable year period beginning with such 

10 taxable year. 

11 ‘‘(B) SPECIAL RULE.—For purposes of 

12 subparagraph (A), rules similar to the rules of 

13 subparagraph (E) of section 408A(d)(3) shall 

14 apply. 

15 ‘‘(6) SPECIAL RULES.— 

16 ‘‘(A) EXEMPTION OF DISTRIBUTIONS FROM

17 TRUSTEE TO TRUSTEE TRANSFER AND WITH18 HOLDING RULES.—For purposes of sections 

19 401(a)(31), 402(f), and 3405, qualified Gulf Oil 

20 Spill distributions shall not be treated as eligi21 ble rollover distributions. 

22 ‘‘(B) QUALIFIED GULF OIL SPILL DIS23 TRIBUTIONS TREATED AS MEETING PLAN DIS24 TRIBUTION REQUIREMENTS.—For purposes this 

25 title, a qualified Gulf Oil Spill distribution shall 


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1 be treated as meeting the requirements of sec2 tions 401(k)(2)(B)(i), 403(b)(7)(A)(ii), 

3 403(b)(11), and 457(d)(1)(A). 

4 ‘‘(b) RECONTRIBUTIONS OF WITHDRAWALS FOR

5 HOME PURCHASES.— 

6 ‘‘(1) RECONTRIBUTIONS.— 

7 ‘‘(A) IN GENERAL.—Any individual who 

8 received a qualified distribution may, during the 

9 applicable period, make one or more contribu10 tions in an aggregate amount not to exceed the 

11 amount of such qualified distribution to an eli12 gible retirement plan (as defined in section 

13 402(c)(8)(B)) of which such individual is a ben14 eficiary and to which a rollover contribution of 

15 such distribution could be made under section 

16 402(c), 403(a)(4), 403(b)(8), or 408(d)(3), as 

17 the case may be. 

18 ‘‘(B) TREATMENT OF REPAYMENTS.— 

19 Rules similar to the rules of subparagraphs (B) 

20 and (C) of subsection (a)(3) shall apply for pur21 poses of this subsection. 

22 ‘‘(2) QUALIFIED DISTRIBUTION.—For purposes 

23 of this subsection, the term ‘qualified distribution’ 

24 means any distribution— 


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1 ‘‘(A) described in section 

2 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii) (but only 

3 to the extent such distribution relates to finan4 cial hardship), 403(b)(11)(B), or 72(t)(2)(F), 

5 ‘‘(B) received after October 31, 2005, and 

6 before April 30, 2010, and 

7 ‘‘(C) which was to be used to purchase or 

8 construct a principal residence in the Gulf Oil 

9 Spill Recovery Zone, but which was not so pur10 chased or constructed on account of the Gulf 

11 Oil Spill. 

12 ‘‘(3) APPLICABLE PERIOD.—For purposes of 

13 this subsection, the term ‘applicable period’ means 

14 the period beginning on April 20, 2010, and ending 

15 on October 20, 2010. 

16 ‘‘(c) LOANS FROM QUALIFIED PLANS.— 

17 ‘‘(1) INCREASE IN LIMIT ON LOANS NOT TREAT18 ED AS DISTRIBUTIONS.—In the case of any loan 

19 from a qualified employer plan (as defined under 

20 section 72(p)(4)) to a qualified individual made dur21 ing the applicable period— 

22 ‘‘(A) clause (i) of section 72(p)(2)(A) shall 

23 be applied by substituting ‘$100,000’ for 

24 ‘$50,000’, and 


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1 ‘‘(B) clause (ii) of such section shall be ap2 plied by substituting ‘the present value of the 

3 nonforfeitable accrued benefit of the employee 

4 under the plan’ for ‘one-half of the present 

5 value of the nonforfeitable accrued benefit of 

6 the employee under the plan’. 

7 ‘‘(2) DELAY OF REPAYMENT.—In the case of a 

8 qualified individual with an outstanding loan on or 

9 after the qualified beginning date from a qualified 

10 employer plan (as defined in section 72(p)(4))— 

11 ‘‘(A) if the due date pursuant to subpara12 graph (B) or (C) of section 72(p)(2) for any re13 payment with respect to such loan occurs dur14 ing the period beginning on the qualified begin15 ning date and ending on December 31, 2011, 

16 such due date shall be delayed for 1 year, 

17 ‘‘(B) any subsequent repayments with re18 spect to any such loan shall be appropriately 

19 adjusted to reflect the delay in the due date 

20 under paragraph (1) and any interest accruing 

21 during such delay, and 

22 ‘‘(C) in determining the 5-year period and 

23 the term of a loan under subparagraph (B) or 

24 (C) of section 72(p)(2), the period described in 

25 subparagraph (A) shall be disregarded. 


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1 ‘‘(3) QUALIFIED INDIVIDUAL.—For purposes of 

2 this subsection, the term ‘qualified individual’ means 

3 an individual whose principal place of abode on April 

4 20, 2010, is located in the Gulf Oil Spill Recovery 

5 Zone and who has sustained an economic loss by 

6 reason of the Gulf Oil Spill. 

7 ‘‘(4) APPLICABLE PERIOD; QUALIFIED BEGIN8 NING DATE.—For purposes of this subsection— 

9 ‘‘(A) the applicable period is the period be10 ginning on April 20, 2010, and ending on De11 cember 31, 2011, and— 

12 ‘‘(B) the qualified beginning date is April 

13 20, 2010. 

14 ‘‘(d) PROVISIONS RELATING TO PLAN AMEND15 MENTS.— 

16 ‘‘(1) IN GENERAL.—If this subsection applies to 

17 any amendment to any plan or annuity contract, 

18 such plan or contract shall be treated as being oper19 ated in accordance with the terms of the plan during 

20 the period described in paragraph (2)(B)(i). 

21 ‘‘(2) AMENDMENTS TO WHICH SUBSECTION AP22 PLIES.— 

23 ‘‘(A) IN GENERAL.—This subsection shall 

24 apply to any amendment to any plan or annuity 

25 contract which is made— 


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1 ‘‘(i) pursuant to any provision of this 

2 section, or pursuant to any regulation 

3 issued by the Secretary or the Secretary of 

4 Labor under any provision of this section, 

5 and 

6 ‘‘(ii) on or before the last day of the 

7 first plan year beginning on or after Janu8 ary 1, 2012, or such later date as the Sec9 retary may prescribe. 

10 In the case of a governmental plan (as defined 

11 in section 414(d)), clause (ii) shall be applied 

12 by substituting the date which is 2 years after 

13 the date otherwise applied under clause (ii). 

14 ‘‘(B) CONDITIONS.—This subsection shall 

15 not apply to any amendment unless— 

16 ‘‘(i) during the period— 

17 ‘‘(I) beginning on the date that 

18 this section or the regulation de19 scribed in subparagraph (A)(i) takes 

20 effect (or in the case of a plan or con21 tract amendment not required by this 

22 section or such regulation, the effec23 tive date specified by the plan), and 

24 ‘‘(II) ending on the date de25 scribed in subparagraph (A)(ii) (or, if 


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1 earlier, the date the plan or contract 

2 amendment is adopted), 

3 the plan or contract is operated as if such 

4 plan or contract amendment were in effect; 

5 and 

6 ‘‘(ii) such plan or contract amendment 

7 applies retroactively for such period. 

8 ‘‘SEC. 1400V–5. EMPLOYEE RETENTION CREDIT FOR EM9 PLOYERS AFFECTED BY GULF OIL SPILL. 

10 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

11 the case of an eligible employer, the Gulf Oil Spill em12 ployee retention credit for any taxable year is an amount 

13 equal to 40 percent of the qualified wages with respect 

14 to each eligible employee of such employer for such taxable 

15 year. For purposes of the preceding sentence, the amount 

16 of qualified wages which may be taken into account with 

17 respect to any individual shall not exceed $6,000. 

18 ‘‘(b) DEFINITIONS.—For purposes of this sub19 section— 

20 ‘‘(1) ELIGIBLE EMPLOYER.—The term ‘eligible 

21 employer’ means any employer— 

22 ‘‘(A) which conducted an active trade or 

23 business on April 20, 2010, in the Gulf Oil Spill 

24 Recovery Zone, and 


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1 ‘‘(B) with respect to whom the trade or 

2 business described in subparagraph (A) is inop3 erable on any day after April 20, 2010, and be4 fore January 1, 2011, as a result of damage 

5 sustained by reason of the Gulf Oil Spill. 

6 ‘‘(2) ELIGIBLE EMPLOYEE.—The term ‘eligible 

7 employee’ means with respect to an eligible employer 

8 an employee whose principal place of employment on 

9 April 20, 2010, with such eligible employer was in 

10 the Gulf Oil Spill Recovery Zone. 

11 ‘‘(3) QUALIFIED WAGES.—The term ‘qualified 

12 wages’ means wages (as defined in section 51(c)(1)), 

13 but without regard to section 3306(b)(2)(B)) paid or 

14 incurred by an eligible employer with respect to an 

15 eligible employee on any day after April 20, 2010, 

16 and before January 1, 2011, which occurs during 

17 the period— 

18 ‘‘(A) beginning on the date on which the 

19 trade or business described in paragraph (1) 

20 first became inoperable at the principal place of 

21 employment of the employee immediately before 

22 the Gulf Oil Spill, and 

23 ‘‘(B) ending on the date on which such 

24 trade or business has resumed significant oper25 ations at such principal place of employment. 


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1 Such term shall include wages paid without regard 

2 to whether the employee performs no services, per3 forms services at a place of employment different 

4 than such principal place of employment, or per5 forms services at such principal place of employment 

6 before significant operations have resumed. 

7 ‘‘(c) CERTAIN RULES TO APPLY.—For purposes of 

8 this section, rules similar to the rules of sections 51(i)(1) 

9 and 52 shall apply. 

10 ‘‘(d) EMPLOYEE NOT TAKEN INTO ACCOUNT MORE

11 THAN ONCE.—An employee shall not be treated as an eli12 gible employee for purposes of this subsection for any pe13 riod with respect to any employer if such employer is al14 lowed a credit under section 51 with respect to such em15 ployee for such period. 

16 ‘‘SEC. 1400V–6. ADDITIONAL TAX RELIEF PROVISIONS. 

17 ‘‘(a) TEMPORARY SUSPENSION OF LIMITATIONS ON

18 CHARITABLE CONTRIBUTIONS.— 

19 ‘‘(1) IN GENERAL.—Except as otherwise pro20 vided in paragraph (2), section 170(b) shall not 

21 apply to qualified contributions and such contribu22 tions shall not be taken into account for purposes of 

23 applying subsections (b) and (d) of section 170 to 

24 other contributions. 


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1 ‘‘(2) TREATMENT OF EXCESS CONTRIBU2 TIONS.—For purposes of section 170— 

3 ‘‘(A) INDIVIDUALS.—In the case of an in4 dividual— 

5 ‘‘(i) LIMITATION.—Any qualified con6 tribution shall be allowed only to the ex7 tent that the aggregate of such contribu8 tions does not exceed the excess of the tax9 payer’s contribution base (as defined in 

10 subparagraph (F) of section 170(b)(1)) 

11 over the amount of all other charitable 

12 contributions allowed under section 

13 170(b)(1). 

14 ‘‘(ii) CARRYOVER.—If the aggregate 

15 amount of qualified contributions made in 

16 the contribution year (within the meaning 

17 of section 170(d)(1)) exceeds the limitation 

18 of clause (i), such excess shall be added to 

19 the excess described in the portion of sub20 paragraph (A) of such section which pre21 cedes clause (i) thereof for purposes of ap22 plying such section. 

23 ‘‘(B) CORPORATIONS.—In the case of a 

24 corporation— 


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1 ‘‘(i) LIMITATION.—Any qualified con2 tribution shall be allowed only to the ex3 tent that the aggregate of such contribu4 tions does not exceed the excess of the tax5 payer’s taxable income (as determined 

6 under paragraph (2) of section 170(b)) 

7 over the amount of all other charitable 

8 contributions allowed under such para9 graph. 

10 ‘‘(ii) CARRYOVER.—Rules similar to 

11 the rules of subparagraph (A)(ii) shall 

12 apply for purposes of this subparagraph. 

13 ‘‘(3) EXCEPTION TO OVERALL LIMITATION ON

14 ITEMIZED DEDUCTIONS.—So much of any deduction 

15 allowed under section 170 as does not exceed the 

16 qualified contributions paid during the taxable year 

17 shall not be treated as an itemized deduction for 

18 purposes of section 68. 

19 ‘‘(4) QUALIFIED CONTRIBUTIONS.— 

20 ‘‘(A) IN GENERAL.—For purposes of this 

21 subsection, the term ‘qualified contribution’ 

22 means any charitable contribution (as defined 

23 in section 170(c)) if— 

24 ‘‘(i) such contribution is paid during 

25 the period beginning on April 20, 2010, 


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1 and ending on December 31, 2012, in cash 

2 to an organization described in section 

3 170(b)(1)(A) (other than an organization 

4 described in section 509(a)(3)), 

5 ‘‘(ii) in the case of a contribution paid 

6 by a corporation, such contribution is for 

7 relief efforts related to the Gulf Oil Spill, 

8 and 

9 ‘‘(iii) the taxpayer has elected the ap10 plication of this subsection with respect to 

11 such contribution. 

12 ‘‘(B) EXCEPTION.—Such term shall not in13 clude a contribution if the contribution is for 

14 establishment of a new, or maintenance in an 

15 existing, segregated fund or account with re16 spect to which the donor (or any person ap17 pointed or designated by such donor) has, or 

18 reasonably expects to have, advisory privileges 

19 with respect to distributions or investments by 

20 reason of the donor’s status as a donor. 

21 ‘‘(C) APPLICATION OF ELECTION TO PART22 NERSHIPS AND S CORPORATIONS.—In the case 

23 of a partnership or S corporation, the election 

24 under subparagraph (A)(iii) shall be made sepa25 rately by each partner or shareholder. 


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1 ‘‘(b) SUSPENSION OF CERTAIN LIMITATIONS ON

2 PERSONAL CASUALTY LOSSES.—Paragraphs (1) and 

3 (2)(A) of section 165(h) shall not apply to losses described 

4 in section 165(c)(3) which arise in the Gulf Oil Spill Re5 covery Zone on or after April 20, 2010, and which are 

6 attributable to the Gulf Oil Spill. In the case of any other 

7 losses, section 165(h)(2)(A) shall be applied without re8 gard to the losses referred to in the preceding sentence. 

9 ‘‘(c) REQUIRED EXERCISE OF AUTHORITY UNDER

10 SECTION 7508A.—In the case of any taxpayer determined 

11 by the Secretary to be affected by the Gulf Oil Spill, any 

12 relief provided by the Secretary under section 7508A shall 

13 be for a period ending not earlier than October 20, 2011. 

14 ‘‘(d) SPECIAL RULE FOR DETERMINING EARNED IN15 COME.— 

16 ‘‘(1) IN GENERAL.—In the case of a qualified 

17 individual, if the earned income of the taxpayer for 

18 the taxable year which includes the applicable date 

19 is less than the earned income of the taxpayer for 

20 the preceding taxable year, the credits allowed under 

21 sections 24(d) and 32 may, at the election of the 

22 taxpayer, be determined by substituting— 

23 ‘‘(A) such earned income for the preceding 

24 taxable year, for 


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1 ‘‘(B) such earned income for the taxable 

2 year which includes the applicable date. 

3 ‘‘(2) QUALIFIED INDIVIDUAL.—For purposes of 

4 this subsection, the term ‘qualified individual’ means 

5 any individual— 

6 ‘‘(A) whose principal place of abode on 

7 April 20, 2010, was located in the Gulf Oil Spill 

8 Recovery Zone, and 

9 ‘‘(B) who was displaced from such prin10 cipal place of abode by reason of the Gulf Oil 

11 Spill. 

12 ‘‘(3) APPLICABLE DATE.—For purposes of this 

13 subsection, the term ‘applicable date’ means April 

14 20, 2010. 

15 ‘‘(4) EARNED INCOME.—For purposes of this 

16 subsection, the term ‘earned income’ has the mean17 ing given such term under section 32(c). 

18 ‘‘(5) SPECIAL RULES.— 

19 ‘‘(A) APPLICATION TO JOINT RETURNS.— 

20 For purposes of paragraph (1), in the case of 

21 a joint return for a taxable year which includes 

22 the applicable date— 

23 ‘‘(i) such paragraph shall apply if ei24 ther spouse is a qualified individual, and 


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1 ‘‘(ii) the earned income of the tax2 payer for the preceding taxable year shall 

3 be the sum of the earned income of each 

4 spouse for such preceding taxable year. 

5 ‘‘(B) UNIFORM APPLICATION OF ELEC6 TION.—Any election made under paragraph (1) 

7 shall apply with respect to both sections 24(d) 

8 and section 32. 

9 ‘‘(C) ERRORS TREATED AS MATHEMATICAL

10 ERROR.—For purposes of section 6213, an in11 correct use on a return of earned income pursu12 ant to paragraph (1) shall be treated as a 

13 mathematical or clerical error. 

14 ‘‘(D) NO EFFECT ON DETERMINATION OF

15 GROSS INCOME, ETC.—Except as otherwise pro16 vided in this subsection, this title shall be ap17 plied without regard to any substitution under 

18 paragraph (1). 

19 ‘‘(e) SECRETARIAL AUTHORITY TO MAKE ADJUST20 MENTS REGARDING TAXPAYER AND DEPENDENCY STA21 TUS.—With respect to taxable years beginning in 2010 or 

22 2011, the Secretary may make such adjustments in the 

23 application of the internal revenue laws as may be nec24 essary to ensure that taxpayers do not lose any deduction 

25 or credit or experience a change of filing status by reason 


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1 of temporary relocations by reason of the Gulf Oil Spill. 

2 Any adjustments made under the preceding sentence shall 

3 ensure that an individual is not taken into account by 

4 more than one taxpayer with respect to the same tax ben5 efit. 

6 ‘‘SEC. 1400V–7. SPECIAL RULES FOR MORTGAGE REVENUE 

7 BONDS. 

8 ‘‘(a) IN GENERAL.—In the case of financing provided 

9 with respect to owner-occupied residences in the Gulf Oil 

10 Spill Recovery Zone, section 143 shall be applied— 

11 ‘‘(1) by treating any such residence as a tar12 geted area residence, 

13 ‘‘(2) by applying subsection (f)(3) thereof with14 out regard to subparagraph (A) thereof, and 

15 ‘‘(3) by substituting ‘$150,000’ for ‘$15,000’ in 

16 subsection (k)(4) thereof. 

17 ‘‘(b) APPLICATION.—Subsection (a) shall not apply 

18 to financing provided after December 31, 2010.’’. 

19 (b) CONFORMING AMENDMENTS.— 

20 (1) Paragraph (2) of section 54(c) is amended 

21 by inserting ‘‘section 1400V–2(j),’’ after 

22 ‘‘1400N(l)’’. 

23 (2) Subparagraph (A) of section 6049(d)(8) is 

24 amended— 


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1 (A) by striking ‘‘or 1400N(l)(6)’’ and in2 serting ‘‘, 1400N(l)(6), or 1400V–2(k)(6)’’, and 

3 (B) by striking ‘‘or 1400N(l)(2)(D)’’ and 

4 inserting ‘‘1400N(l)(2)(D), or 1400V– 

5 2(j)(2)(D)’’. 

6 (3) Subsection (b) of section 38 is amended by 

7 striking ‘‘plus’’ at the end of paragraph (35), by 

8 striking the period at the end of paragraph (36) and 

9 inserting a comma, and by adding at the end the fol10 lowing new paragraphs: 

11 ‘‘(37) the Gulf Oil Spill housing credit deter12 mined under section 1400V–3(b), plus 

13 ‘‘(38) the Gulf Oil Spill employee retention 

14 credit determined under section 1400V–5(a).’’. 

15 (4) Section 280C(a) is amended by striking 

16 ‘‘and 1400R’’ and inserting ‘‘1400R, 1400V–3(b), 

17 and 1400V–5’’. 

18 (5) The table of parts for subchapter Y of chap19 ter 1 is amended by adding at the end the following 

20 new item: 

‘‘PART IV. TAX BENEFITS FOR GULF OIL SPILL RECOVERY ZONE.’’. 

21 (c) EFFECTIVE DATE.— 

22 (1) IN GENERAL.—Except as provided in para23 graph (2), the amendments made by this section 

24 shall apply to taxable years ending on or after April 

25 20, 2010. 


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1 (2) CARRYBACKS.—Subsections (j) and (n) of 

2 section 1400V–2 of the Internal Revenue Code of 

3 1986 (as added by this section) shall apply to losses 

4 arising in such taxable years. 

5 SEC. 3. SPECIAL EXTENSION OF BONUS DEPRECIATION 

6 PLACED IN SERVICE DATE FOR TAXPAYERS 

7 AFFECTED BY THE GULF OIL SPILL. 

8 In applying the rule under section 168(k)(2)(A)(iv) 

9 of the Internal Revenue Code of 1986 to any property de10 scribed in subparagraph (B) or (C) of section 168(k)(2) 

11 of such Code— 

12 (1) the placement in service of which— 

13 (A) is to be located in the Gulf Oil Recov14 ery Zone (as defined in section 1400V–1 of 

15 such Code), and 

16 (B) is to be made by any taxpayer affected 

17 by the Gulf Oil Spill (as defined in section 

18 1400V–1 of such Code), or 

19 (2) which is manufactured in such Zone by any 

20 person affected by the Gulf Oil Spill, 

21 the Secretary of the Treasury may, on a taxpayer by tax22 payer basis, extend the required date of the placement in 

23 service of such property under such section by such period 

24 of time as is determined necessary by the Secretary but 

25 not to exceed 1 year. For purposes of the preceding senVerDate Mar 15 2010 02:10 Jul 07, 2010 Jkt 089200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 E:\BILLS\H5699.IH H5699

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1 tence, the determination shall be made by only taking into 

2 account the effect of the Gulf Oil spill on the date of such 

3 placement by the taxpayer. 

4 SEC. 4. GULF COAST RECOVERY BONDS. 

5 It is the sense of the Congress that the Secretary of 

6 the Treasury, or the Secretary’s delegate, should designate 

7 one or more series of bonds or certificates (or any portion 

8 thereof) issued under section 3105 of title 31, United 

9 States Code, as ‘‘Gulf Oil Spill Recovery Bonds’’ in re10 sponse to the Gulf Oil Spill (as defined in section 1400V– 

11 1 of the Internal Revenue Code of 1986). 

Æ 


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