I

104TH CONGRESS

1ST SESSION H. R. 1637

To amend the Internal Revenue Code of 1986 to repeal the requirement

that a taxpayer must receive a ruling from the Secretary of the Treasury

in order to determine the deduction for contributions to a reserve for

nuclear decommissioning costs, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 15, 1995

Mr. CRANE introduced the following bill; which was referred to the Committee

on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to repeal

the requirement that a taxpayer must receive a ruling

from the Secretary of the Treasury in order to determine

the deduction for contributions to a reserve for nuclear

decommissioning costs, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Nuclear Decommis5 sioning Costs Simplification Act of 1995’’.
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1 SEC. 2. SIMPLIFICATION OF DEDUCTION FOR NUCLEAR DE2 COMMISSIONING COSTS.

3 (a) REPEAL OF RULING AMOUNT.—

4 (1) IN GENERAL.—Paragraph (2) of section

5 468A(b) of the Internal Revenue Code of 1986 (re6 lating to limitation on amounts paid into fund) is

7 amended to read as follows:

8 ‘‘(2) the scheduled amount applicable to such

9 taxable year.’’

10 (2) SCHEDULED AMOUNT.—Subsection (d) of

11 section 468A of such Code is amended to read as

12 follows:

13 ‘‘(d) SCHEDULED AMOUNT.—For purposes of this

14 section, the term ‘scheduled amount’ means, with respect

15 to any taxable year, the amount necessary to—

16 ‘‘(1) fund that portion of the nuclear decommis17 sioning costs of the taxpayer with respect to the nu18 clear powerplant which bears the same ratio to the

19 total nuclear decommissioning costs with respect to

20 such nuclear powerplant as the period for which the

21 Fund is in effect bears to the estimated useful life

22 of such nuclear powerplant, and

23 ‘‘(2) prevent any excessive funding of such costs

24 or the funding of such costs at a rate more rapid

25 than level funding, taking into account appropriate
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1 discount rates, determined in accordance with guide2 lines prescribed by the Secretary.’’

3 (b) TREATMENT OF INCORRECT FUNDING.—Sub4 section (e) of section 468A of such Code is amended by

5 adding at the end the following new paragraph:

6 ‘‘(8) TREATMENT OF INCORRECT FUNDING.—

7 ‘‘(A) EXCESS CONTRIBUTION.—If there is

8 a final determination that the amount shown on

9 the return as the deduction under subsection

10 (a) for any taxable year exceeded the amount

11 allowable as a deduction for such taxable

12 year—

13 ‘‘(i) such excess shall be treated for

14 purposes of this chapter as allowable as a

15 deduction under subsection (a) for such

16 taxable year,

17 ‘‘(ii) the Fund shall be allowed a de18 duction for the Fund’s taxable year in

19 which such determination becomes final in

20 an amount equal to the aggregate earnings

21 attributable to such excess which were in22 cludible in the gross income of the Fund

23 for all preceding taxable years, and

24 ‘‘(iii) the limitation under subsection

25 (b) for the taxpayer’s taxable year in which
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1 such determination becomes final shall be

2 reduced by the sum of such excess and

3 such earnings.

4 If the reduction required under clause (iii) for

5 any taxable year exceeds the limitation under

6 subsection (b) for such year, such limitation

7 shall not be reduced below zero, and such ex8 cess shall applied to reduce such limitation for

9 succeeding taxable years.

10 ‘‘(B) CONTRIBUTION SHORTFALL.—If

11 there is a final determination that the amount

12 allowable as a deduction under subsection (a)

13 for any taxable year exceeds the amount shown

14 on the return as the deduction under subsection

15 (a) for such taxable year, the limitation under

16 subsection (b) for the taxable year in which

17 such determination becomes final shall be in18 creased by the amount of such excess.’’

19 (c) EFFECTIVE DATE.—The amendments made by

20 this section shall apply to taxable years beginning after

21 the date of the enactment of this Act.

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