In general
A taxpayer may elect to treat any qualified environmental remediation expenditure which is paid or incurred by the taxpayer as an expense which is not chargeable to capital account. Any expenditure which is so treated shall be allowed as a deduction for the taxable year in which it is paid or incurred.
Qualified environmental remediation expenditure
In general
Special rule for expenditures for depreciable property
Such term shall not include any expenditure for the acquisition of property of a character subject to the allowance for depreciation which is used in connection with the abatement or control of hazardous substances at a qualified contaminated site; except that the portion of the allowance under section 167 for such property which is otherwise allocated to such site shall be treated as a qualified environmental remediation expenditure.
Qualified contaminated site
In general
National priorities listed sites not included
Such term shall not include any site which is on, or proposed for, the national priorities list under section 105(a)(8)(B) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (as in effect on the date of the enactment of this section).
Taxpayer must receive statement from State environmental agency
An area shall be treated as a qualified contaminated site with respect to expenditures paid or incurred during any taxable year only if the taxpayer receives a statement from the appropriate agency of the State in which such area is located that such area meets the requirement of paragraph (1)(B).
Appropriate State agency
For purposes of paragraph (3), the chief executive officer of each State may, in consultation with the Administrator of the Environmental Protection Agency, designate the appropriate State environmental agency within 60 days of the date of the enactment of this section. If the chief executive officer of a State has not designated an appropriate environmental agency within such 60-day period, the appropriate environmental agency for such State shall be designated by the Administrator of the Environmental Protection Agency.
Hazardous substance
In general
Exception
Such term shall not include any substance with respect to which a removal or remedial action is not permitted under section 104 of such Act by reason of subsection (a)(3) thereof.
Deduction recaptured as ordinary income on sale, etc.
Coordination with other provisions
Sections 280B and 468 shall not apply to amounts which are treated as expenses under this section.
Regulations
The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.
Termination
This section shall not apply to expenditures paid or incurred after .
Pub. L. 105–34, title IX, § 941(a)111 Stat. 882Pub. L. 106–170, title V113 Stat. 1924Pub. L. 106–554, § 1(a)(7) [title I, § 162(a), (b)]114 Stat. 2763Pub. L. 108–311, title III, § 308(a)118 Stat. 1179Pub. L. 109–432, div. A, title I, § 109(a)120 Stat. 2939Pub. L. 110–343, div. C, title III, § 318(a)122 Stat. 3873Pub. L. 111–312, title VII, § 745(a)124 Stat. 3319(Added , , ; amended , §§ 511, 532(c)(2)(A), , , 1930; , , , 2763A–625; , , ; , (b), , ; , , ; , , .)
Editorial Notes
References in Text
Pub. L. 105–34The date of the enactment of this section, referred to in subsec. (c)(2), (4), is the date of enactment of , which was approved .
Sections 101(14), 102, 104, and 105(a)(8)(B) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, referred to in subsecs. (c)(2) and (d), are classified to sections 9601(14), 9602, 9604, and 9605(a)(8)(B), respectively, of Title 42, The Public Health and Welfare.
Amendments
Pub. L. 111–3122010—Subsec. (h). substituted “” for “”.
Pub. L. 110–3432008—Subsec. (h). substituted “” for “”.
Pub. L. 109–432, § 109(b)2006—Subsec. (d)(1)(C). , added subpar. (C).
Pub. L. 109–432, § 109(a)Subsec. (h). , substituted “2007” for “2005”.
Pub. L. 108–3112004—Subsec. (h). substituted “2005” for “2003”.
Pub. L. 106–554, § 1(a)(7) [title I, § 162(a)]section 1221(a)(1) of this title2000—Subsec. (c). , amended subsec. (c) generally. Prior to amendment, subsec. (c) defined the term “qualified contaminated site” to include certain property described in , within a targeted area, and at which there had been a release or disposal of any hazardous substance, provided that an area could be treated as a qualified contaminated site only if the taxpayer received a certain statement from an appropriate State agency, provided for designation of appropriate State agencies, and defined targeted area.
Pub. L. 106–554, § 1(a)(7) [title I, § 162(b)]Subsec. (h). , substituted “2003” for “2001”.
Pub. L. 106–170, § 532(c)(2)(A)1999—Subsec. (c)(1)(A)(i). , substituted “section 1221(a)(1)” for “section 1221(1)”.
Pub. L. 106–170, § 511Subsec. (h). , substituted “2001” for “2000”.
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Pub. L. 111–312, title VII, § 745(b)124 Stat. 3319
Effective Date of 2008 Amendment
Pub. L. 110–343, div. C, title III, § 318(b)122 Stat. 3873
Effective Date of 2006 Amendment
Pub. L. 109–432, div. A, title I, § 109(c)120 Stat. 2939
Effective Date of 2004 Amendment
Pub. L. 108–311, title III, § 308(b)118 Stat. 1179
Effective Date of 2000 Amendment
Pub. L. 106–554, § 1(a)(7) [title I, § 162(c)]114 Stat. 2763
Effective Date of 1999 Amendment
section 532(c)(2)(A) of Pub. L. 106–170section 532(d) of Pub. L. 106–170section 170 of this titleAmendment by applicable to any instrument held, acquired, or entered into, any transaction entered into, and supplies held or acquired on or after , see , set out as a note under .
Effective Date
Pub. L. 105–34, title IX, § 941(c)111 Stat. 885