Offending Oil Polluters Act

To amend the Internal Revenue Code of 1986 to deny certain tax benefits to persons responsible for the discharge of oil or other hazardous substances into navigable waters of the United States. 1. Short title This Act may be cited as the Offending Oil Polluters Act 2. Denial of certain tax benefits to offending oil polluters (a) In general Subchapter B of chapter 1 XII Denial of certain tax benefits to offending oil polluters Sec. 293. Denial of certain tax benefits to offending oil polluters. 293. Denial of certain tax benefits to offending oil polluters (a) In general In the case of an offending oil polluter, no deduction or credit shall be allowed under this chapter with respect to any amount paid or incurred— (1) in connection with a discharge of oil or a hazardous substance referred to in subsection (b)(1), (2) for any attorney fees and court costs in connection with any action with respect to such discharge, (3) as a payment or restitution related to such discharge, and (4) any costs or penalties required by Federal law or regulations or certified in a settlement by a Federal court. (b) Offending oil polluter For purposes of this section, the term offending oil polluter (1) any person that is a responsible party for a vessel or a facility from which oil or a hazardous substance is discharged (within the meaning of section 311 of the Federal Water Pollution Control Act ( 33 U.S.C. 1321 (2) any person who is a member of the same expanded affiliated group (as defined in section 1471(e)(2)) as a person described in paragraph (1). . (b) Clerical amendment The table of parts for subchapter B of chapter 1 of such Code is amended by adding at the end the following new item: Part XII. Denial of certain tax benefits to offending oil polluters . (c) Study Not later than 6 months after the date of the enactment of this Act, and annually thereafter, the Secretary of the Treasury (or the Secretary’s delegate) shall conduct a study, and submit the results to the Committee on Ways and Means and the Committee on Energy and Commerce of the House of Representatives and the Committee on Finance and the Committee on Environment and Public Works of the Senate— (1) to determine the loss in revenue to the Treasury as a result of deductions allowed by the Internal Revenue Code of 1986 for cleaning up oil that is discharged (within the meaning of section 1002 of the Oil Pollution Act of 1990 ( 33 U.S.C. 2702 (2) to determine the amount of revenue savings by the Treasury as a result of section 293 (d) Effective date The amendments made by this section shall apply to amounts paid or incurred after December 31, 2014.

Summary: Offending Oil Polluters Act This bill amends the Internal Revenue Code to deny any tax credit or deduction to an offending oil polluter. The bill defines "offending oil polluter" as any person who is responsible for a vessel or facility from which oil or a hazardous substance is discharged and any person who is a member of the same expanded affiliated group as the offending oil polluter. Specifically, the bill denies a tax benefit for any amount paid or incurred: (1) in connection with a discharge of oil or a hazardous substance, (2) for any attorney fees and court costs in connection with any legal action involving such discharge, (3) as a payment or restitution related to such discharge, and (4) for any costs or penalties required by federal law or certified in a settlement by a federal court. The bill requires the Department of the Treasury to conduct, and report on, an annual study to determine: (1) the revenue loss as a result of tax deductions allowed for cleaning up oil that is discharged after April 19, 2010, and (2) the amount of revenue savings resulting from this Act.