Superfund Enhancement Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 2882 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. IN THE HOUSE OF REPRESENTATIVES MAY 21, 2019 Ms. VELA´ZQUEZ introduced the following bill; which was referred to the Com- mittee on Ways and Means, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdic- tion of the committee concerned A BILL To amend the Internal Revenue Code of 1986 and the Small Business Act to reduce costs for certain businesses re- quired to relocate from a Superfund site, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Superfund Enhance- 4 ment Act of 2019’’. 5 VerDate Sep 11 2014 20:21 Jun 05, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2882.IH H2882 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 2882 IH SEC. 2. EXTENSION AND MODIFICATION OF SUPERFUND 1 EXCISE TAXES. 2 (a) EXTENSION.—Subsection (e) of section 4611 of 3 the Internal Revenue Code of 1986 is amended to read 4 as follows: 5 ‘‘(e) APPLICATION OF HAZARDOUS SUBSTANCE 6 SUPERFUND FINANCING RATE.—The Hazardous Sub- 7 stance Superfund financing rate under this section shall 8 apply after December 31, 1986, and before January 1, 9 1996, and after the date that is 60 days after the date 10 of the enactment of the Superfund Enhancement Act of 11 2019.’’. 12 (b) MODIFICATION OF HAZARDOUS SUBSTANCE 13 SUPERFUND FINANCING RATE.— 14 (1) IN GENERAL.—Section 4611(c)(2)(A) of 15 such Code is amended by striking ‘‘9.7 cents’’ and 16 inserting ‘‘15.8 cents’’. 17 (2) INFLATION ADJUSTMENT.—Section 4611(c) 18 of such Code is amended by adding at the end the 19 following new paragraph: 20 ‘‘(3) ADJUSTMENT FOR INFLATION.— 21 ‘‘(A) IN GENERAL.—In the case of any 22 taxable year beginning after December 31, 23 2019, the amount under paragraph (2)(A) shall 24 be increased by an amount equal to— 25 ‘‘(i) such amount, multiplied by 26 VerDate Sep 11 2014 20:21 Jun 05, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2882.IH H2882 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 2882 IH ‘‘(ii) the cost-of-living adjustment de- 1 termined under section 1(f)(3) for the cal- 2 endar year in which such taxable year be- 3 gins by substituting ‘calendar year 2018’ 4 for ‘calendar year 2016’ in subparagraph 5 (A)(ii) thereof. 6 ‘‘(B) ROUNDING.—If any increase deter- 7 mined under this paragraph is not a multiple of 8 0.1 cents, such increase shall be rounded to the 9 next lowest multiple of 0.1 cents.’’. 10 (c) MODIFICATION OF RATE OF TAX ON CERTAIN 11 CHEMICALS.—Section 4661(b) of the Internal Revenue 12 Code of 1986 is amended to read as follows: 13 ‘‘(b) AMOUNT OF TAX.— 14 ‘‘(1) IN GENERAL.—The amount of tax imposed 15 by subsection (a) shall be determined in accordance 16 with the following table: 17 ‘‘In the case of: The tax is the following amount per ton: Acetylene ................................................................. $11.00 Benzene ................................................................... 11.00 Butane .................................................................... 11.00 Butylene .................................................................. 11.00 Butadiene ................................................................ 11.00 Ethylene .................................................................. 11.00 Methane .................................................................. 7.77 Napthalene .............................................................. 11.00 Propylene ................................................................ 11.00 Toluene ................................................................... 11.00 Xylene ..................................................................... 11.00 Ammonia ................................................................. 5.96 Antimony ................................................................ 10.05 Antimony trioxide ................................................... 8.47 Arsenic .................................................................... 10.05 VerDate Sep 11 2014 20:21 Jun 05, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2882.IH H2882 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 2882 IH ‘‘In the case of: The tax is the following amount per ton: Arsenic trioxide ....................................................... 7.70 Barium sulfide ........................................................ 5.19 Bromine .................................................................. 10.05 Cadmium ................................................................. 10.05 Chlorine .................................................................. 6.10 Chromium ............................................................... 10.05 Chromite ................................................................. 3.43 Potassium dichromate ............................................ 3.82 Sodium dichromate ................................................. 4.22 Cobalt ...................................................................... 10.05 Cupric sulfate ......................................................... 4.22 Cupric oxide ............................................................ 8.11 Cuprous oxide ......................................................... 8.96 Hydrochloric acid .................................................... 0.65 Hydrogen fluoride ................................................... 9.55 Lead oxide .............................................................. 9.35 Mercury ................................................................... 10.05 Nickel ...................................................................... 10.05 Phosphorus ............................................................. 10.05 Stannous chloride ................................................... 6.43 Stannic chloride ...................................................... 4.79 Zinc chloride ........................................................... 5.01 Zinc sulfate ............................................................. 4.29 Potassium hydroxide ............................................... 0.50 Sodium hydroxide ................................................... 0.63 Sulfuric acid ........................................................... 0.59 Nitric acid ............................................................... 0.54. ‘‘(2) ADJUSTMENT FOR INFLATION.— 1 ‘‘(A) IN GENERAL.—In the case of any 2 taxable year beginning after December 31, 3 2019, each of the dollar amounts in the table 4 in paragraph (1) shall be increased by an 5 amount equal to— 6 ‘‘(i) such amount, multiplied by 7 ‘‘(ii) the cost-of-living adjustment de- 8 termined under section 1(f)(3) for the cal- 9 endar year in which such taxable year be- 10 gins by substituting ‘calendar year 2018’ 11 VerDate Sep 11 2014 20:21 Jun 05, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2882.IH H2882 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 2882 IH for ‘calendar year 2016’ in subparagraph 1 (A)(ii) thereof. 2 ‘‘(B) ROUNDING.—If any increase deter- 3 mined under this paragraph is not a multiple of 4 $0.01, such increase shall be rounded to the 5 next lowest multiple of $0.01.’’. 6 (d) EFFECTIVE DATE.—The amendments made by 7 this section shall apply to oil and petroleum products re- 8 ceived or entered during calendar quarters beginning more 9 than 60 days after the date of the enactment of this Act. 10 SEC. 3. CLARIFICATION OF DEFINITION OF CRUDE OIL FOR 11 EXCISE TAX PURPOSES. 12 (a) DEFINITION OF CRUDE OIL.—Paragraph (1) of 13 section 4612(a) of the Internal Revenue Code of 1986 is 14 amended to read as follows: 15 ‘‘(1) CRUDE OIL.—The term ‘crude oil’ includes 16 crude oil condensates, natural gasoline, any bitumen 17 or bituminous mixture, any oil derived from a bitu- 18 men or bituminous mixture (including oil derived 19 from tar sands), and any oil derived from kerogen- 20 bearing sources (including oil derived from oil 21 shale).’’. 22 (b) EFFECTIVE DATE.—The amendment made by 23 this section shall apply to oil and petroleum products re- 24 VerDate Sep 11 2014 20:21 Jun 05, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2882.IH H2882 pamtmann on DSKBFK8HB2PROD with BILLS 6 •HR 2882 IH ceived or entered during calendar quarters beginning more 1 than 60 days after the date of the enactment of this Act. 2 SEC. 4. DEDUCTION FOR EXPENSES IN CONNECTION WITH 3 MOVING FROM A SITE LISTED ON NATIONAL 4 PRIORITIES LIST. 5 (a) IN GENERAL.—Part VI of subchapter B of chap- 6 ter 1 of the Internal Revenue Code of 1986 is amended 7 by inserting after section 198 the following new section: 8 ‘‘SEC. 198A. EXPENSES IN CONNECTION WITH MOVING 9 FROM A SITE LISTED ON NATIONAL PRIOR- 10 ITIES LIST. 11 ‘‘(a) IN GENERAL.—A qualified small business may 12 elect to treat as an expense which is not chargeable to 13 capital account, and deductible in the year in which paid 14 or incurred, so much of the qualified environmental dis- 15 aster moving expenses which are paid or incurred by the 16 taxpayer for the taxable year as do not exceed $10,000. 17 ‘‘(b) QUALIFIED SMALL BUSINESS.—For purposes of 18 this section, the term ‘qualified small business’ means any 19 person which is a small business concern (as defined under 20 section 3 of the Small Business Act (15 U.S.C. 632)) at 21 all times during the preceding taxable year. 22 ‘‘(c) QUALIFIED ENVIRONMENTAL DISASTER MOV- 23 ING EXPENSE.—For purposes of this section, the term 24 VerDate Sep 11 2014 20:21 Jun 05, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2882.IH H2882 pamtmann on DSKBFK8HB2PROD with BILLS 7 •HR 2882 IH ‘qualified environmental disaster moving expense’ means 1 any expenditure— 2 ‘‘(1) which is otherwise chargeable to capital ac- 3 count, and 4 ‘‘(2) which is paid or incurred in connection 5 with relocating a trade or business carried on in a 6 location which is situated on, or adjacent to, a site 7 which is on, or proposed for, the national priorities 8 list under section 105(a)(8)(B) of the Comprehen- 9 sive Environmental Response, Compensation, and 10 Liability Act of 1980. 11 ‘‘(d) SPECIAL RULES.—For purposes of this sec- 12 tion— 13 ‘‘(1) POTENTIALLY RESPONSIBLE PARTIES EX- 14 CLUDED.—No amount shall be taken into account 15 under subsection (a) by a person who under section 16 107(a) of the Comprehensive Environmental Re- 17 sponse, Compensation, and Liability Act of 1980 is 18 potentially liable with respect to the site described in 19 subsection (c)(2). 20 ‘‘(2) CONTROLLED GROUPS.—All members of 21 the same controlled group of corporations (within 22 the meaning of section 52(a)) and all persons under 23 common control (within the meaning of section 24 VerDate Sep 11 2014 20:21 Jun 05, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2882.IH H2882 pamtmann on DSKBFK8HB2PROD with BILLS 8 •HR 2882 IH 52(b)) shall be treated as 1 person for purposes of 1 this section. 2 ‘‘(3) PARTNERSHIPS AND S CORPORATIONS.—In 3 the case of a partnership, the $10,000 limitation 4 under subsection (a) shall apply with respect to the 5 partnership and each partner. A similar rule shall 6 apply in the case of an S corporation and its share- 7 holders. 8 ‘‘(4) DENIAL OF DOUBLE BENEFIT.—In the 9 case of the amount of the deduction determined 10 under this section— 11 ‘‘(A) no deduction or credit shall be al- 12 lowed for such amount under any other provi- 13 sion of this chapter, and 14 ‘‘(B) no increase in the adjusted basis of 15 any property shall result from such amount.’’. 16 (b) CLERICAL AMENDMENT.—The table of sections 17 for part VI of subchapter B of chapter 1 of such Code 18 is amended by inserting after the item relating to section 19 198 the following new item: 20 ‘‘Sec. 198A. Expenses in connection with moving from a Superfund site.’’. (c) EFFECTIVE DATE.—The amendments made by 21 this section shall apply to amounts paid or incurred in tax- 22 able years beginning after the date of the enactment of 23 this Act. 24 VerDate Sep 11 2014 20:21 Jun 05, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2882.IH H2882 pamtmann on DSKBFK8HB2PROD with BILLS 9 •HR 2882 IH SEC. 5. DISASTER LOANS TO SMALL BUSINESS CONCERNS 1 FOR RELOCATION FROM A SUPERFUND SITE. 2 (a) ESTABLISHMENT.—The Administrator of the 3 Small Business Administration shall establish and carry 4 out a pilot program under which the Administrator shall 5 provide direct loans to an eligible person to assist such 6 eligible person in relocating the principal place of business 7 or primary place of residence of such eligible person, if 8 the principal place of business or primary place of resi- 9 dence is located in an area that is designated as a Super- 10 fund site on a date after— 11 (1) with respect to an eligible person that is a 12 small business concern, the establishment of the 13 principal place of business; and 14 (2) with respect to an eligible person that is an 15 individual, the establishment of a primary place of 16 residence. 17 (b) LOAN TERMS.—A loan made under the program 18 established under subsection (a) shall— 19 (1) be subject to the same limitations as a loan 20 described under section 7(b)(8) of the Small Busi- 21 ness Act (15 U.S.C. 636(b)(8)); and 22 (2) have a term of 5 years. 23 (c) ELIGIBILITY FOR ECONOMIC INJURY DISASTER 24 LOANS.— 25 VerDate Sep 11 2014 20:21 Jun 05, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2882.IH H2882 pamtmann on DSKBFK8HB2PROD with BILLS 10 •HR 2882 IH (1) IN GENERAL.—The Administrator may 1 make a loan pursuant to section 7(b)(2) of the 2 Small Business Act (15 U.S.C. 636(b)(2)) to assist 3 an eligible person that is a small business concern 4 that has suffered substantial economic injury as a 5 result of the location of the eligible person in a 6 Superfund site. 7 (2) NO DUPLICATION OF BENEFITS.—An eligi- 8 ble person described in paragraph (1) may receive a 9 loan under subsection (a) and section 7(b)(2) of the 10 Small Business Act (15 U.S.C. 636(b)(2)). 11 (3) POTENTIALLY RESPONSIBLE PARTIES EX- 12 CLUDED.—No loan may be made to a person who 13 under section 107(a) of the Comprehensive Environ- 14 mental Response, Compensation, and Liability Act 15 of 1980 is potentially liable with respect to the 16 Superfund site. 17 (d) DEFINITIONS.—In this section: 18 (1) ELIGIBLE PERSON.—The term ‘‘eligible per- 19 son’’ mean [Text truncated for display. 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