; and (2) by inserting after subsection (l) the following: (m) Special deduction for losses attributable to a toxic algae zone (1) In general Notwithstanding any other provision of this section, in the case of a taxpayer who operates a qualified trade or business in a toxic algae zone, there shall be allowed as a deduction an amount equal to— (A) the average qualified net profits of such trade or business during the period of the 3 taxable years preceding the taxable year in which a qualified incident occurred, minus (B) the qualified net profits of such trade or business during the taxable year in which such qualified event occurred. (2) Additional deduction The deduction allowed under this subsection shall be in addition to any deduction allowed under subsection (a). (3) Year of election For purposes of the deduction allowed under this subsection, such deduction may, at the election of the taxpayer, be claimed in— (A) the taxable year in which the qualified incident occurred, or (B) the taxable year immediately preceding the taxable year described in subparagraph (A). (4) Definitions In this subsection: (A) Qualified incident The term qualified incident means any act or event that exposes an area to toxic algal blooms, as determined by the Secretary in consultation with the National Oceanic and Atmospheric Administration. (B) Qualified net profits The term qualified net profits means the net profits of a qualified trade or business which is properly attributable to activities of such trade or business within a toxic algae zone. (C) Qualified trade or business The term qualified trade or business means a trade or business that meets the gross receipts test under subsection (c) of section 448. (D) State The term State means any of the several States, the District of Columbia, or any territory or possession of the United States. (E) Toxic algae zone (i) In general The term toxic algae zone means any census tract or political subdivision of a State which has been designated by the Secretary, in consultation with