CLARIFICATION OF DEFINITION OF SPECIFIED LIABILITY LOSS.

SEC. 3004. CLARIFICATION OF DEFINITION OF SPECIFIED LIABILITY LOSS. (a) In General.—Subparagraph (B) of section 172(f)(1) (defining specified liability loss) is amended to read as follows: “(B)(i) Any amount allowable as a deduction under this chapter (other than section 468(a)(1) or 468A(a)) which is in satisfaction of a liability under a Federal or State law requiring—112 STAT. 2681–906 “(II) the decommissioning of a nuclear power plant (or any unit thereof), “(III) the dismantlement of a drilling platform, “(IV) the remediation of environmental contamination, or “(V) a payment under any workers compensation act (within the meaning of section 461(h)(2)(C)(i)). “(ii) A liability shall be taken into account under this subparagraph only if— “(I) the act (or failure to act) giving rise to such liability occurs at least 3 years before the beginning of the taxable year, and “(II) the taxpayer used an accrual method of accounting throughout the period or periods during which such act (or failure to act) occurred.”. (b) Effective Date.—The amendment made by this section shall apply to net operating losses arising in taxable years ending after the date of the enactment of this Act.