Title: Offending Oil Polluters Act
Policy area: Taxation

Summary:
Offending Oil Polluters Act
This bill amends the Internal Revenue Code to deny certain tax credits or deductions 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 deduction or a credit for any amount paid or incurred:
The Department of the Treasury must report to Congress regarding: (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 bill.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6658 Introduced in House (IH)]

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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 
         substances 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Offending Oil Polluters Act''.

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 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' means--
            ``(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)), 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 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)) after April 19, 2010; and
            (2) to determine the amount of revenue savings by the 
        Treasury as a result of section 293 of the Internal Revenue 
        Code of 1986 (as added by this section).
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2017.
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