To amend the Internal Revenue Code of 1986 to clarify that certain settlement funds established under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 are beneficially owned by the United States and are not subject to tax.

This bill proposes to change the tax status of specific settlement funds created to pay for the cleanup of hazardous waste sites under the Superfund program. Under current law, the interest earned on these funds can be subject to federal income tax; this legislation would classify these funds as being owned by the government, making them tax-exempt. By removing the tax burden, the bill ensures that the full amount of settlement money provided by responsible parties is preserved and directed toward environmental restoration projects rather than being diverted back to the Treasury through taxes.