I 
115TH CONGRESS 
2D SESSION 
H. R. 6658 
To amend the Internal Revenue Code of 1986 to deny certain tax benefits 
to persons responsible for the discharge of oil or other hazardous sub-
stances into navigable waters of the United States. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 7, 2018 
Mr. ENGEL (for himself and Mr. WELCH) 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 deny certain 
tax benefits to persons responsible for the discharge of 
oil or other hazardous substances into navigable waters 
of the United States. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Offending Oil Polluters 
Act’’. 
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SEC. 2. DENIAL OF CERTAIN TAX BENEFITS TO OFFENDING 
OIL POLLUTERS. 
(a) IN GENERAL.—Subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new part: 
‘‘PART XII—DENIAL OF CERTAIN TAX BENEFITS 
TO OFFENDING OIL POLLUTERS 
‘‘Sec. 293. Denial of certain tax benefits to offending oil polluters. 
‘‘SEC. 293. DENIAL OF CERTAIN TAX BENEFITS TO OFFEND-
ING 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 dis-
charge, 
‘‘(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’ means— 
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‘‘(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 sec-
tion 311 of the Federal Water Pollution Control Act 
(33 U.S.C. 1321)), and 
‘‘(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 Com-
mittee 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 Environ-
ment and Public Works of the Senate— 
(1) to determine the loss in revenue to the 
Treasury as a result of deductions allowed by the In-
ternal Revenue Code of 1986 for cleaning up oil that 
is discharged (within the meaning of section 1002 of 
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the Oil Pollution Act of 1990 (33 U.S.C. 2702)) 
after April 19, 2010; and 
(2) to determine the amount of revenue savings 
by the Treasury as a result of section 293 of the In-
ternal Revenue Code of 1986 (as added by this sec-
tion). 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
December 31, 2017. 
Æ 
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