I

105TH CONGRESS

1ST SESSION H. R. 505

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 HOUSE OF REPRESENTATIVES

FEBRUARY 4, 1997

Mr. RANGEL (for himself, Mr. FATTAH, Mr. MATSUI, Mr. COYNE, Mr.

MCDERMOTT, Mr. LEWIS of Georgia, Mr. NEAL of Massachusetts, Mr.

JEFFERSON, Mr. CONYERS, Mr. DELLUMS, Mr. FOGLIETTA, Mr. TOWNS,

Mr. SERRANO, Ms. WATERS, Mr. BISHOP, Mr. CLYBURN, Mrs. MEEK of

Florida, Mr. BLUMENAUER, and Mr. JACKSON of Illinois) 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 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
2

•HR 505 IH

1 of an amendment to, or repeal of, a section or other provi2 sion, the reference shall be considered to be made to a

3 section or other provision of the Internal Revenue Code

4 of 1986.

5 TITLE I—ADDITIONAL

6 EMPOWERMENT ZONES

7 SEC. 101. ADDITIONAL EMPOWERMENT ZONES.

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

9 (relating to designations of empowerment zones and enter10 prise communities) is amended—

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

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

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

14 ‘‘1,000,000’’.

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

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

17 of this Act, except that designations of new empowerment

18 zones made pursuant to such amendments shall be made

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

20 enactment of this Act.
3

•HR 505 IH

1 TITLE II—NEW EMPOWERMENT

2 ZONES AND ENTERPRISE

3 COMMUNITIES

4 SEC. 201. DESIGNATION OF ADDITIONAL EMPOWERMENT

5 ZONES AND ENTERPRISE COMMUNITIES.

6 (a) IN GENERAL.—Section 1391 (relating to designa7 tion procedure for empowerment zones and enterprise

8 communities) is amended by adding at the end the follow9 ing new subsection:

10 ‘‘(g) ADDITIONAL DESIGNATIONS PERMITTED.—

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

12 designated under subsection (a)—

13 ‘‘(A) ENTERPRISE COMMUNITIES.—The

14 appropriate Secretaries may designate in the

15 aggregate an additional 80 nominated areas as

16 enterprise communities under this section, sub17 ject to the availability of eligible nominated

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

19 be designated in urban areas and not more

20 than 30 may be designated in rural areas.

21 ‘‘(B) EMPOWERMENT ZONES.—The appro22 priate Secretaries may designate in the aggre23 gate an additional 20 nominated areas as

24 empowerment zones under this section, subject

25 to the availability of eligible nominated areas.
4

•HR 505 IH

1 Of that number, not more than 15 may be des2 ignated in urban areas and not more than 5

3 may be designated in rural areas.

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

5 designation may be made under this subsection after

6 the date of the enactment of this subsection and be7 fore January 1, 1999.

8 ‘‘(3) MODIFICATIONS TO ELIGIBILITY CRITERIA,

9 ETC.—

10 ‘‘(A) POVERTY RATE REQUIREMENT.—

11 ‘‘(i) IN GENERAL.—A nominated area

12 shall be eligible for designation under this

13 subsection only if the poverty rate for each

14 population census tract within the nomi15 nated area is not less than 20 percent and

16 the poverty rate for at least 90 percent of

17 the population census tracts within the

18 nominated area is not less than 25 per19 cent.

20 ‘‘(ii) TREATMENT OF CENSUS TRACTS

21 WITH SMALL POPULATIONS.—A population

22 census tract with a population of less than

23 2,000 shall be treated as having a poverty

24 rate of not less than 25 percent if—
5

•HR 505 IH

1 ‘‘(I) more than 75 percent of

2 such tract is zoned for commercial or

3 industrial use, and

4 ‘‘(II) such tract is contiguous to

5 1 or more other population census

6 tracts which have a poverty rate of

7 not less than 25 percent (determined

8 without regard to this clause).

9 ‘‘(iii) EXCEPTION FOR DEVELOPABLE

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

11 3 noncontiguous parcels in a nominated

12 area which may be developed for commer13 cial or industrial purposes. The aggregate

14 area of noncontiguous parcels to which the

15 preceding sentence applies with respect to

16 any nominated area shall not exceed 1,000

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

18 empowerment zone).

19 ‘‘(iv) CERTAIN PROVISIONS NOT TO

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

21 of section 1392(b) (1) and (2) as relates to

22 section 1392(a)(4)) shall not apply to an

23 area nominated for designation under this

24 subsection.
6

•HR 505 IH

1 ‘‘(v) SPECIAL RULE FOR CERTAIN EN2 TERPRISE COMMUNITIES AND EMPOWER3 MENT ZONES.—The Secretary of Agri4 culture may designate not more than 5 en5 terprise communities, and not more than 1

6 empowerment zone, in rural areas without

7 regard to clause (i) if such areas satisfy

8 emigration criteria specified by the Sec9 retary of Agriculture.

10 ‘‘(B) SIZE LIMITATION.—

11 ‘‘(i) IN GENERAL.—The parcels de12 scribed in subparagraph (A)(iii) shall not

13 be taken into account in determining

14 whether the requirement of subparagraph

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

16 ‘‘(ii) SPECIAL RULE FOR RURAL

17 AREAS.—If a population census tract (or

18 equivalent division under section

19 1392(b)(4)) in a rural area exceeds 1,000

20 square miles or includes a substantial

21 amount of land owned by the Federal,

22 State, or local government, the nominated

23 area may exclude such excess square mile24 age or governmentally owned land and the

25 exclusion of that area will not be treated
7

•HR 505 IH

1 as violating the continuous boundary re2 quirement of section 1392(a)(3)(B).

3 ‘‘(C) AGGREGATE POPULATION LIMITA4 TION.—The aggregate population limitation

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

6 shall not apply to a designation under para7 graph (1)(B).

8 ‘‘(D) PREVIOUSLY DESIGNATED ENTER9 PRISE COMMUNITIES MAY BE INCLUDED.—Sub10 section (e)(5) shall not apply to any enterprise

11 community designated under subsection (a) that

12 is also nominated for designation under this

13 subsection.

14 ‘‘(E) INDIAN RESERVATIONS MAY BE NOM15 INATED.—

16 ‘‘(i) IN GENERAL.—Section

17 1393(a)(4) shall not apply to an area nom18 inated for designation under this sub19 section.

20 ‘‘(ii) SPECIAL RULE.—An area in an

21 Indian reservation shall be treated as nom22 inated by a State and a local government

23 if it is nominated by the reservation gov24 erning body (as determined by the Sec25 retary of Interior).’’
8

•HR 505 IH

1 (b) EMPLOYMENT CREDIT NOT TO APPLY TO NEW

2 EMPOWERMENT ZONES.—Section 1396 (relating to

3 empowerment zone employment credit) is amended by

4 adding at the end the following new subsection:

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

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

7 section shall be applied without regard to any

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

9 (c) INCREASED EXPENSING UNDER SECTION 179

10 NOT TO APPLY IN DEVELOPABLE SITES.—Section 1397A

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

12 amended by adding at the end the following new sub13 section:

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

15 qualified zone property shall not include any property sub16 stantially all of the use of which is in any parcel described

17 in section 1391(g)(3)(A)(iii).’’

18 (d) CONFORMING AMENDMENTS.—

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

20 each amended by striking ‘‘subsection (a)’’ and in21 serting ‘‘this section’’.

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

23 ‘‘this section’’ and inserting ‘‘subsection (a)’’.
9

•HR 505 IH

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

2 ZONE FACILITY BONDS WITH RESPECT TO

3 NEW EMPOWERMENT ZONES.

4 (a) IN GENERAL.—Section 1394 (relating to tax-ex5 empt enterprise zone facility bonds) is amended by adding

6 at the end the following new subsection:

7 ‘‘(f) BONDS FOR EMPOWERMENT ZONES DES8 IGNATED UNDER SECTION 1391(g).—

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

10 empowerment zone facility bond—

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

12 private activity bond for purposes of section

13 146, and

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

15 apply.

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

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

18 apply to a new empowerment zone facility bond

19 only if such bond is designated for purposes of

20 this subsection by the local government which

21 nominated the area to which such bond relates.

22 ‘‘(B) LIMITATION ON BONDS DES23 IGNATED.—The aggregate face amount of

24 bonds which may be designated under subpara25 graph (A) with respect to any empowerment

26 zone shall not exceed—
10

•HR 505 IH

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

2 rural area,

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

4 an urban area and the zone has a popu5 lation of less than 100,000, and

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

7 an urban area and the zone has a popu8 lation of at least 100,000.

9 ‘‘(C) SPECIAL RULES.—

10 ‘‘(i) COORDINATION WITH LIMITATION

11 IN SUBSECTION (c).—Bonds to which para12 graph (1) applies shall not be taken into

13 account in applying the limitation of sub14 section (c) to other bonds.

15 ‘‘(ii) CURRENT REFUNDING NOT

16 TAKEN INTO ACCOUNT.—In the case of a

17 refunding (or series of refundings) of a

18 bond designated under this paragraph, the

19 refunding obligation shall be treated as

20 designated under this paragraph (and shall

21 not be taken into account in applying sub22 paragraph (B)) if—

23 ‘‘(I) the amount of the refunding

24 bond does not exceed the outstanding

25 amount of the refunded bond, and
11

•HR 505 IH

1 ‘‘(II) the refunded bond is re2 deemed not later than 90 days after

3 the date of issuance of the refunding

4 bond.

5 ‘‘(3) NEW EMPOWERMENT ZONE FACILITY

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

7 ‘new empowerment zone facility bond’ means any

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

9 only empowerment zones designated under section

10 1391(g) were taken into account under sections

11 1397B and 1397C.’’

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

13 this section shall apply to obligations issued after the date

14 of the enactment of this Act.

15 SEC. 203. MODIFICATIONS TO ENTERPRISE ZONE FACILITY

16 BOND RULES FOR ALL EMPOWERMENT

17 ZONES AND ENTERPRISE COMMUNITIES.

18 (a) MODIFICATIONS RELATING TO ENTERPRISE

19 ZONE BUSINESS.—Paragraph (3) of section 1394(b) (de20 fining enterprise zone business) is amended to read as fol21 lows:

22 ‘‘(3) ENTERPRISE ZONE BUSINESS.—
12

•HR 505 IH

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

2 this paragraph, the term ‘enterprise zone busi3 ness’ has the meaning given such term by sec4 tion 1397B.

5 ‘‘(B) MODIFICATIONS.—In applying sec6 tion 1397B for purposes of this section—

7 ‘‘(i) BUSINESSES IN ENTERPRISE

8 COMMUNITIES ELIGIBLE.—References in

9 section 1397B to empowerment zones shall

10 be treated as including references to enter11 prise communities.

12 ‘‘(ii) WAIVER OF REQUIREMENTS

13 DURING STARTUP PERIOD.—A business

14 shall not fail to be treated as an enterprise

15 zone business during the startup period

16 if—

17 ‘‘(I) as of the beginning of the

18 startup period, it is reasonably ex19 pected that such business will be an

20 enterprise zone business (as defined in

21 section 1397B as modified by this

22 paragraph) at the end of such period,

23 and

24 ‘‘(II) such business makes bona

25 fide efforts to be such a business.
13

•HR 505 IH

1 ‘‘(iii) REDUCED REQUIREMENTS

2 AFTER TESTING PERIOD.—A business shall

3 not fail to be treated as an enterprise zone

4 business for any taxable year beginning

5 after the testing period by reason of failing

6 to meet any requirement of subsection (b)

7 or (c) of section 1397B if at least 35 per8 cent of the employees of such business for

9 such year are residents of an empowerment

10 zone or an enterprise community. The pre11 ceding sentence shall not apply to any

12 business which is not a qualified business

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

14 section 1397B(d).

15 ‘‘(C) DEFINITIONS RELATING TO SUBPARA16 GRAPH (B).—For purposes of subparagraph

17 (B)—

18 ‘‘(i) STARTUP PERIOD.—The term

19 ‘startup period’ means, with respect to any

20 property being provided for any business,

21 the period before the first taxable year be22 ginning more than 2 years after the later

23 of—

24 ‘‘(I) the date of issuance of the

25 issue providing such property, or
14

•HR 505 IH

1 ‘‘(II) the date such property is

2 first placed in service after such issu3 ance (or, if earlier, the date which is

4 3 years after the date described in

5 subclause (I)).

6 ‘‘(ii) TESTING PERIOD.—The term

7 ‘testing period’ means the first 3 taxable

8 years beginning after the startup period.

9 ‘‘(D) PORTIONS OF BUSINESS MAY BE EN10 TERPRISE ZONE BUSINESS.—The term ‘enter11 prise zone business’ includes any trades or busi12 nesses which would qualify as an enterprise

13 zone business (determined after the modifica14 tions of subparagraph (B)) if such trades or

15 businesses were separately incorporated.’’

16 (b) MODIFICATIONS RELATING TO QUALIFIED ZONE

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

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

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

20 ‘qualified zone property’ has the meaning given such

21 term by section 1397C; except that—

22 ‘‘(A) the references to empowerment zones

23 shall be treated as including references to enter24 prise communities, and
15

•HR 505 IH

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

2 by substituting ‘an amount equal to 15 percent

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

4 the adjusted basis’.’’

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

6 this section shall apply to obligations issued after the date

7 of the enactment of this Act.

8 SEC. 204. MODIFICATIONS TO ENTERPRISE ZONE BUSINESS

9 DEFINITION FOR ALL EMPOWERMENT ZONES

10 AND ENTERPRISE COMMUNITIES.

11 (a) IN GENERAL.—Section 1397B (defining enter12 prise zone business) is amended—

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

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

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

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

17 substantial portion’’,

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

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

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

21 the following new flush sentence:

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

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

24 such lessee is an enterprise zone business.’’,
16

•HR 505 IH

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

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

3 (6) by adding at the end the following new sub4 section:

5 ‘‘(f) TREATMENT OF BUSINESSES STRADDLING CEN6 SUS TRACT LINES.—For purposes of this section, if—

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

8 real property located within an empowerment zone,

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

10 uses real property located outside the empowerment

11 zone,

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

13 paragraph (1) is substantial compared to the

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

15 and

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

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

18 described in paragraph (1),

19 then all the services performed by employees, all business

20 activities, all tangible property, and all intangible property

21 of the business entity or proprietorship that occur in or

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

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

24 empowerment zone.’’

25 (b) EFFECTIVE DATES.—
17

•HR 505 IH

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

2 this section shall apply to taxable years beginning on

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

4 (2) SPECIAL RULE FOR ENTERPRISE ZONE FA5 CILITY BONDS.—For purposes of section 1394(b) of

6 the Internal Revenue Code of 1986, the amendments

7 made by this section shall apply to obligations issued

8 after the date of the enactment of this Act.

9 TITLE III—EXPENSING OF ENVI10 RONMENTAL REMEDIATION

11 COSTS

12 SEC. 301. EXPENSING OF ENVIRONMENTAL REMEDIATION

13 COSTS.

14 (a) IN GENERAL.—Part VI of subchapter B of chap15 ter 1 is amended by adding at the end the following new

16 section:

17 ‘‘SEC. 198. EXPENSING OF ENVIRONMENTAL REMEDIATION

18 COSTS.

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

20 any qualified environmental remediation expenditure

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

22 which is not chargeable to capital account. Any expendi23 ture which is so treated shall be allowed as a deduction

24 for the taxable year in which it is paid or incurred.
18

•HR 505 IH

1 ‘‘(b) QUALIFIED ENVIRONMENTAL REMEDIATION

2 EXPENDITURE.—For purposes of this section—

3 ‘‘(1) IN GENERAL.—The term ‘qualified envi4 ronmental remediation expenditure’ means any ex5 penditure—

6 ‘‘(A) which is otherwise chargeable to cap7 ital account, and

8 ‘‘(B) which is paid or incurred in connec9 tion with the abatement or control of hazardous

10 substances at a qualified contaminated site.

11 ‘‘(2) SPECIAL RULE FOR EXPENDITURES FOR

12 DEPRECIABLE PROPERTY.—Such term shall not in13 clude any expenditure for the acquisition of property

14 of a character subject to the allowance for deprecia15 tion which is used in connection with the abatement

16 or control of hazardous substances at a qualified

17 contaminated site; except that the portion of the al18 lowance under section 167 for such property which

19 is otherwise allocated to such site shall be treated as

20 a qualified environmental remediation expenditure.

21 ‘‘(c) QUALIFIED CONTAMINATED SITE.—For pur22 poses of this section—

23 ‘‘(1) QUALIFIED CONTAMINATED SITE.—

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

25 contaminated site’ means any area—
19

•HR 505 IH

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

2 use in a trade or business or for the pro3 duction of income, or which is property de4 scribed in section 1221(1) in the hands of

5 the taxpayer,

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

7 and

8 ‘‘(iii) which contains (or potentially

9 contains) any hazardous substance.

10 ‘‘(B) TAXPAYER MUST RECEIVE STATE11 MENT FROM STATE ENVIRONMENTAL AGEN12 CY.—An area shall be treated as a qualified

13 contaminated site with respect to expenditures

14 paid or incurred during any taxable year only

15 if the taxpayer receives a statement from the

16 appropriate agency of the State in which such

17 area is located that such area meets the re18 quirements of clauses (ii) and (iii) of subpara19 graph (A).

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

21 purposes of subparagraph (B), the appropriate

22 agency of a State is the agency designated by

23 the Administrator of the Environmental Protec24 tion Agency for purposes of this section. If no
20

•HR 505 IH

1 agency of a State is designated under the pre2 ceding sentence, the appropriate agency for

3 such State shall be the Environmental Protec4 tion Agency.

5 ‘‘(2) TARGETED AREA.—

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

7 area’ means—

8 ‘‘(i) any population census tract with

9 a poverty rate of not less than 20 percent,

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

11 population of less than 2,000 if—

12 ‘‘(I) more than 75 percent of

13 such tract is zoned for commercial or

14 industrial use, and

15 ‘‘(II) such tract is contiguous to

16 1 or more other population census

17 tracts which meet the requirement of

18 clause (i) without regard to this

19 clause,

20 ‘‘(iii) any empowerment zone or enter21 prise community (and any supplemental

22 zone designated on December 21, 1994),

23 and

24 ‘‘(iv) any site announced before Feb25 ruary 1, 1997, as being included as a
21

•HR 505 IH

1 brownfields pilot project of the Environ2 mental Protection Agency.

3 ‘‘(B) NATIONAL PRIORITIES LISTED SITES

4 NOT INCLUDED.—Such term shall not include

5 any site which is on the national priorities list

6 under section 105(a)(8)(B) of the Comprehen7 sive Environmental Response, Compensation,

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

9 date of the enactment of this section).

10 ‘‘(C) CERTAIN RULES TO APPLY.—For

11 purposes of this paragraph, the rules of sections

12 1392(b)(4) and 1393(a)(9) shall apply.

13 ‘‘(D) TREATMENT OF CERTAIN SITES.—

14 For purposes of this paragraph, a single con15 taminated site shall be treated as within a tar16 geted area if—

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

18 located within a targeted area described in

19 subparagraph (A) (determined without re20 gard to this subparagraph), and

21 ‘‘(ii) the remaining portions are con22 tiguous to, but outside, such targeted area.

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

24 section—
22

•HR 505 IH

1 ‘‘(1) IN GENERAL.—The term ‘hazardous sub2 stance’ means—

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

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

5 Comprehensive Environmental Response, Com6 pensation, and Liability Act of 1980, and

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

8 a hazardous substance under section 102 of

9 such Act.

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

11 any substance with respect to which a removal or re12 medial action is not permitted under section 104 of

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

14 ‘‘(e) DEDUCTION RECAPTURED AS ORDINARY IN15 COME ON SALE, ETC.—Solely for purposes of section

16 1245, in the case of property to which a qualified environ17 mental remediation expenditure would have been capital18 ized but for this section—

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

20 such expenditure shall be treated as a deduction for

21 depreciation, and

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

23 1245 property) shall be treated as section 1245

24 property solely for purposes of applying section 1245

25 to such deduction.
23

•HR 505 IH

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

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

3 are treated as expenses under this section.

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

5 such regulations as may be necessary or appropriate to

6 carry out the purposes of this section.’’

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

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

9 adding at the end the following new item:

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

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

11 this section shall apply to expenditures paid or incurred

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

13 years ending after such date.

Æ