Denial of deduction for removal costs and damages for certain oil spills

(a) In general Section 162(f) of the Internal Revenue Code of 1986 is amended— (1) by redesignating paragraph (5) as paragraph (6), and (2) by inserting after paragraph (4) the following: (5) Expenses for removal costs and damages relating to certain oil spill liability Notwithstanding paragraphs (2) and (3), no deduction shall be allowed under this chapter for any costs or damages for which the taxpayer is liable under section 1002 of the Oil Pollution Act of 1990 (33 U.S.C. 2702). (b) Effective date The amendments made by this section shall apply with respect to any liability arising in taxable years ending after the date of the enactment of this Act.