S.Amdt. 4759

SA 4759. Mr. WICKER submitted an amendment intended to be proposed to
amendment SA 4753 proposed by Mr. Reid (for himself and Mr. McConnell)
to the bill H.R. 4853, to amend the Internal Revenue Code of 1986 to
extend the funding and expenditure authority of the Airport and Airway
Trust Fund, to amend title 49, United States Code, to extend
authorizations for the airport improvement program, and for other
purposes; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE _--OIL RECOVERY ZONE

SEC. __1. SHORT TITLE.

This title may be cited as the ``Oil Recovery Zone Act''.

SEC. __2. RECOVERY ZONE; GULF OIL SPILL.

For purposes of this title--
(1) Recovery zone.--The term ``Recovery Zone'' means the
following counties and parishes under the unified Coast Guard
command that responded to the Gulf oil spill:
(A) The counties of Escambia, Santa Rosa, Okaloosa, Walton,
Bay, Gulf, Franklin, and Wakulla in the State of Florida.
(B) The counties of Mobile and Baldwin in the State of
Alabama.
(C) The counties of Hancock, Harrison, and Jackson in the
State of Mississippi.
(D) The parishes of Orleans, St. Tammany, St. Bernard,
Plaquemines, Jefferson, Lafourche, Terrebonne, St. Mary,
Iberia, Vermilion, and Cameron in the State of Louisiana.
(2) Gulf oil spill.--The term ``Gulf oil spill'' means the
discharge of oil by reason of the explosion on, and sinking
of, the mobile offshore drilling unit Deepwater Horizon.

SEC. __3. NON-RECOGNITION OF INCOME FROM INSURANCE PROCEEDS
WHICH ARE REINVESTED IN THE RECOVERY ZONE.

(a) In General.--For purposes of the Internal Revenue Code
of 1986, amounts received from any qualified Gulf oil spill
payment shall be recognized only to the extent that the
amount realized exceeds the qualified investments made by the
taxpayer with respect to such qualified Gulf oil spill
payment.
(b) Qualified Gulf Oil Spill Payment.--For purposes of this
section, the term ``qualified Gulf oil spill payment''
means--
(1) any proceeds or payments from insurance received in
connection with the Gulf oil spill, or
(2) any payment for damages attributable to the Gulf oil
spill under section 1002 of the

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Oil Pollution Act of 1990 (33 U.S.C. 2702) or from the Gulf
Coast Claims Facility in connection with the Gulf oil spill.
(c) Qualified Investment.--For purposes of this section--
(1) In general.--The term ``qualified investment'' means,
with respect to any qualified Gulf oil spill payment, the sum
of the qualified recovery zone investments which are made by
the taxpayer before the date which is 6 months after the
later of--
(A) the date of the qualified Gulf oil spill payment, or
(B) the date of the enactment of this Act.
In the case of any qualified recovery zone investment made
with respect to a qualified recovery zone trade or business
described in paragraph (3)(A), the preceding sentence shall
be applied by substituting ``5 years'' for ``6 months''.
(2) Qualified recovery zone investment.--The term
``qualified recovery zone investment'' means sum of--
(A) amounts paid or incurred for tangible property (to
which section 168 of the Internal Revenue Code of 1986
applies) acquired by purchase (within the meaning of section
179(d)(2) of such Code) for use in the active conduct of a
qualified recovery zone trade or business, plus
(B) amounts paid or incurred for start-up expenditures (as
defined in section 195(c)) in connection with a qualified
recovery zone trade or business.
(3) Qualified recovery zone trade or business.--The term
``qualified recovery zone trade or business'' means--
(A) any commercial or charter fishing business, or
(B) any hotel, lodging, recreation, entertainment, or
restaurant business located in the recovery zone.
(d) Reduction in Basis.--For purposes of section 1016 of
the Internal Revenue Code of 1986, the basis in any qualified
investment shall be reduced (but not below zero) by the
amount of qualified gulf oil spill payments not recognized
under this section. The Secretary of the Treasury shall issue
guidance providing for the allocation of the reduction of
basis among qualified investments.

SEC. __4. 5-YEAR NET OPERATING LOSS CARRYBACK FOR CERTAIN OIL
SPILL-RELATED LOSSES.

(a) In General.--For purposes of the Internal Revenue Code
of 1986, in the case of a taxpayer which has a qualified oil
spill loss (as defined in subsection (c)) for a taxable year,
such qualified oil spill loss shall be a net operating loss
carryback under section 172 of such Code to the elected
number of taxable years preceding the taxable year of such
loss.
(b) Elected Number of Taxable Years.--For purposes of
subsection (a), the elected number of taxable years is any
whole number elected by the taxpayer which is more than 2 and
less than 6.
(c) Qualified Oil Spill Losses.--For purposes of this
section--
(1) Definition.--
(A) In general.--Except as otherwise provided in this
paragraph, the term ``qualified oil spill loss'' means the
lesser of--
(i) the excess of--

(I) the amount of losses in a taxable year ending after
April 20, 2010, and before October 1, 2011, incurred by any
trade or business operating in the recovery zone and
attributable to the Gulf oil spill, 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 from the Gulf Coast Claims Facility in
connection with the Gulf oil spill, or

(ii) the amount of the net operating loss (as defined in
section 172(c) of the Internal Revenue Code of 1986) for such
taxable year.
(B) Safe harbor for certain small businesses.--In the case
of any taxpayer operating a trade or business in the recovery
zone the gross revenues of whom 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 (as so defined) 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
section 172(j) of the Internal Revenue Code of 1986).
(2) Coordination with subsection (b)(2).--For purposes of
applying section 172(b)(2) of such Code, 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 (as
defined in section 172(f) of such Code) is treated.
(3) Election.--
(A) In general.--Any taxpayer entitled to a carryback under
subsection (a) from any loss year may elect to have the
carryback period with respect to such loss year determined
without regard to subsection (a).
(B) Procedure.--Any election under subsection (a) or
subparagraph (A) 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.
(d) Certain Taxpayers Excluded.--Subsection (a) shall not
apply to any taxpayer that, during calendar year 2010, owned,
operated, or had a contract to operate the mobile offshore
drilling unit Deepwater Horizon.
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, this section shall apply to net operating losses
(as so defined) arising in taxable years ending after April
20, 2010.
(2) Transition rule.--In the case of a net operating loss
(as so defined) for a taxable year ending before the date of
the enactment of this Act--
(A) notwithstanding subsection (b)(1)(H)(iii)(II) or (b)(3)
of section 172 of the Internal Revenue Code of 1986, any
election made under such subsections with respect to such
loss may be revoked before the applicable date,
(B) any election made under subsection (a) 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.
______