Product Liability Partial Self-Insurance Act of 1980

Product Liability Partial Self-Insurance Act of 1980 - Amends the Internal Revenue Code to allow a deduction to any business enterprise engaged in the manufacture, importation, distribution, lease, or sale of any product for contributions to its product liability trust account and for amounts paid to a captive insurer (wholly or partially-owned by the taxpayer) for product liability insurance. Specifies the amount a taxpayer may deduct, based upon the ability of such taxpayer to obtain insurance through conventional channels. Disallows any deductions for product liability losses which do not exceed the sum of the total trust funds in the taxpayer's account at the beginning of the taxable year plus the amount of deductible payments made by the taxpayer to the account during each year.

Imposes penalties for the improper use of product liability reserve funds.

Treats amounts accumulated in the taxpayer's product liability trust account as amounts accumulated for reasonable anticipated business needs, for purposes of avoiding the accumulated earnings tax.