To provide that certain costs of private foundations in removing hazardous substances shall be treated as qualifying distributions.

Amends the Internal Revenue Code to provide that in the case of a private foundation the distributable amount shall be reduced (but not below zero) by any amount paid or incurred (or set aside) by such private foundation for the investigatory costs and direct costs of removal or taking remedial action with respect to a hazardous substance released at a facility which was owned or operated by such private foundation. Sets forth limitations.