S.Amdt. 4335

SA 4335. Mr. NELSON of Florida (for himself, Ms. Landrieu, Mr.
LeMieux, Mr. Vitter, Mr. Shelby, Mr. Wicker, Mr. Cochran, and Mr.
Schumer) submitted an amendment intended to be proposed to amendment SA
4301 proposed by Mr. Baucus to the bill H.R. 4213, to amend the
Internal Revenue Code of 1986 to extend certain expiring provisions,
and for other purposes; which was ordered to lie on the table; as
follows:

At the end of title VI, add the following:

SEC. ___. 5-YEAR NET OPERATING LOSS CARRYBACK FOR CERTAIN OIL
SPILL-RELATED LOSSES.

(a) Extension of Net Operating Loss Carryback Period.--
Paragraph (1) of section 172(b) of the Internal Revenue Code
of 1986 is amended by adding at the end the following new
subparagraph:
``(K) Certain oil spill-related losses.--In the case of a
taxpayer which has a qualified oil spill loss (as defined in
subsection (k)) for a taxable year, such qualified oil spill
loss shall be a net operating loss carryback to each of the 5
taxable years preceding the taxable year of such loss.''.
(b) Qualified Oil Spill Loss.--Section 172 of the Internal
Revenue Code of 1986 is amended by redesignating subsection
(k) as subsection (l) and by inserting after subsection (j)
the following new subsection:
``(k) Rules Relating to Qualified Oil Spill Losses.--For
purposes of this section--
``(1) Qualified oil spill losses.--
``(A) In general.--Except as otherwise provided in this
paragraph, the term `qualified oil spill loss' means the
lesser of--
``(i) the excess of--

[[Page S4860]]

``(I) the amount of losses in a taxable year ending after
April 20, 2010, and before October 1, 2011, incurred by a
commercial or charter fishing business operating in the Gulf
of Mexico or a Gulf of Mexico tourism-related business
attributable to the discharge of oil that began in 2010 in
connection with the explosion on, and sinking of, the mobile
offshore drilling unit Deepwater Horizon, over
``(II) amounts received during such taxable year as
payments for lost profits and earning capacity under section
1002(b)(2)(E) of the Oil Pollution Act of 1990 (33 U.S.C.
2702(b)(2)(E)), or

``(ii) the amount of the net operating loss for such
taxable year.
``(B) Safe harbor for certain small businesses.--In the
case of--
``(i) any commercial or charter fishing business operating
in the Gulf of Mexico, or
``(ii) any Gulf of Mexico tourism-related business,

the gross revenues of which for any taxable year ending after
April 20, 2010, and before October 1, 2011, do not exceed
$5,000,000, such term means the amount of the net operating
loss of such business for such taxable year.
``(C) Coordination with qualified disaster losses.--Such
term shall not include any qualified disaster loss (as
defined in subsection (j)).
``(2) Coordination with subsection (b)(2).--For purposes of
applying subsection (b)(2), a qualified oil spill loss for
any taxable year shall be treated in a manner similar to the
manner in which a specified liability loss is treated.
``(3) Election.--Any taxpayer entitled to a 5-year
carryback under subsection (b)(1)(K) from any loss year may
elect to have the carryback period with respect to such loss
year determined without regard to subsection (b)(1)(K). Such
election shall be made in such manner as may be prescribed by
the Secretary and shall be made by the due date (including
extensions of time) for filing the taxpayer's return for the
taxable year of the net operating loss. Such election, once
made for any taxable year, shall be irrevocable for such
taxable year.
``(4) Gulf of mexico tourism-related business.--For
purposes of this subsection--
``(A) In general.--The term `Gulf of Mexico tourism-related
business' means a hotel, lodging, recreation, entertainment,
or restaurant business located in a Gulf Coast community.
``(B) Gulf coast community.--The term `Gulf Coast
community' means any county or parish in the States of
Louisiana, Mississippi, Alabama, or Florida which borders the
Gulf of Mexico.''.
(c) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to net operating losses arising in taxable years ending after
April 20, 2010.
(2) Transition rule.--In the case of a net operating loss
for a taxable year ending before the date of the enactment of
this Act--
(A) notwithstanding section 172(b)(1)(H)(iii)(II), any
election made under subsection (b)(1)(H) or 172(b)(3) of
section 172 of such Code with respect to such loss may
(notwithstanding such section) be revoked before the
applicable date,
(B) any election made under section 172(b)(1)(K) of such
Code with respect to such loss shall (notwithstanding such
section) be treated as timely made if made before the
applicable date, and
(C) any application under section 6411(a) of such Code with
respect to such loss shall be treated as timely filed if
filed before the applicable date.

For purposes of this paragraph, the term ``applicable date''
means the date which is 60 days after the date of the
enactment of this Act.
______