To amend the Internal Revenue Code of 1986 to deny any deduction for cleanup and damage costs attributable to certain oil spills in navigable waters.

Amends the Internal Revenue Code to disallow an income tax deduction for business expenses incurred as removal or liability costs resulting from the discharge from a vessel onto navigable waters of oil being transported by or for the taxpayer.

Applies this deduction denial retroactively with respect to amounts incurred in taxable years 1989 and thereafter.