Superfund Enhancement Act of 2018

To amend the Internal Revenue Code of 1986 and the Small Business Act to reduce costs for certain businesses required to relocate from a Superfund site, and for other purposes. 1. Short title This Act may be cited as the Superfund Enhancement Act of 2018 2. Renewal of Superfund financing rate (a) In general Section 4611 (b) Effective date The amendment made by this section shall take effect on January 1, 2018. 3. Deduction for expenses in connection with moving from a site listed on national priorities list (a) In general Part VI of subchapter B of chapter 1 198A. Expenses in connection with moving from a site listed on national priorities list (a) In general A qualified small business may elect to treat as an expense which is not chargeable to capital account, and deductible in the year in which paid or incurred, so much of the qualified environmental disaster moving expenses which are paid or incurred by the taxpayer for the taxable year as do not exceed $10,000. (b) Qualified small business For purposes of this section, the term qualified small business 15 U.S.C. 632 (c) Qualified environmental disaster moving expense For purposes of this section, the term qualified environmental disaster moving expense (1) which is otherwise chargeable to capital account, and (2) which is paid or incurred in connection with relocating a trade or business carried on in a location which is situated on, or adjacent to, a site which is on, or proposed for, the national priorities list under section 105(a)(8)(B) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980. (d) Special rules For purposes of this section— (1) Potentially responsible parties excluded No amount shall be taken into account under subsection (a) by a person who under section 107(a) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 is potentially liable with respect to the site described in subsection (c)(2). (2) Controlled groups All members of the same controlled group of corporations (within the meaning of section 52(a)) and all persons under common control (within the meaning of section 52(b)) shall be treated as 1 person for purposes of this section. (3) Partnerships and S corporations In the case of a partnership, the $10,000 limitation under subsection (a) shall apply with respect to the partnership and each partner. A similar rule shall apply in the case of an S corporation and its shareholders. (4) Denial of double benefit In the case of the amount of the deduction determined under this section— (A) no deduction or credit shall be allowed for such amount under any other provision of this chapter, and (B) no increase in the adjusted basis of any property shall result from such amount. . (b) Clerical amendment The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 198 the following new item: Sec. 198A. Expenses in connection with moving from a site listed on national priorities list. . (c) Effective date The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act. 4. Disaster loans to small business concerns for relocation from a Superfund site (a) Establishment The Administrator shall establish and carry out a pilot program under which the Administrator shall provide direct loans to an eligible person to assist such eligible person in relocating the principal place of business or primary place of residence of such eligible person, if the principal place of business or primary place of residence is located in an area that is designated as a Superfund site on a date after— (1) with respect to an eligible person that is a small business concern, the establishment of the principal place of business; or (2) with respect to an eligible person that is an individual, the establishment of a primary place of residence. (b) Loan terms A loan made under the program established under subsection (a) shall— (1) be subject to the same limitations as a loan described under section 7(b)(8) of the Small Business Act ( 15 U.S.C. 636(b)(8) (2) have a term of 5 years. (c) Eligibility for economic injury disaster loans (1) In general The Administrator may make a loan pursuant to section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) (2) No duplication of benefits An eligible person described in paragraph (1) may receive a loan under subsection (a) and section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) (3) Potentially responsible parties excluded No loan may be made to a person who under section 107(a) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 is potentially liable with respect to the Superfund site. (d) Definitions In this section: (1) Eligible person The term eligible person (A) a small business concern (as defined under section 3 of the Small Business Act ( 15 U.S.C. 632 (B) an individual whose primary place of residence is located on or adjacent to a Superfund site. (2) Substantial economic injury The term substantial economic injury 15 U.S.C. 636(b)(3) (3) Superfund site The term Superfund site 42 U.S.C. 9605(a)(8)(B) (e) Authorization of appropriations There is authorized to be appropriated to the Administrator $10,000,000 for fiscal years 2019 through 2023. 5. Eligibility for economic injury loans Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) (1) in paragraph (2), by inserting to any eligible concern pursuant to paragraph (16), or (2) by inserting after paragraph (15) the following new paragraph: (16) Economic injury loans for eligible concerns (A) In general The Administrator may make a loan under paragraph (2) to an eligible concern regardless of whether a disaster has occurred in the area in which the eligible concern is located. (B) Definitions (i) Eligible concern The term eligible concern (ii) Superfund site The term Superfund site 42 U.S.C. 9605(a)(8)(B) .

Summary: Superfund Enhancement Act of 2018 This bill amends the Internal Revenue Code to: (1) reinstate the Hazardous Substance Superfund financing rate (the Superfund tax) beginning on January 1, 2018; and (2) allow certain small businesses to expense up to $10,000 of the costs for relocating a trade or business carried on in a location which is situated on, or adjacent to, a site which is on, or proposed for, the national priorities list under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980. The bill also makes small businesses and individuals that are relocating from a Superfund site eligible for certain Small Business Administration disaster loans.