E 1034 CONGRESSIONAL RECORD — Extensions of Remarks May 15, 1995

Mr. Speaker, I would ask that my colleagues

join me in saluting Hugo DeCiutiis, and extend

our sympathy to his children and family. His

life represents the best of American values,

and his tireless dedication to educational

achievement and public service are an example to us all. Mr. DeCiutiis understood that one

person can make a difference in the lives of

others, and with that simple tenant, he has left

a legacy that we should all hope to emulate.

NUCLEAR DECOMMISSIONING

COSTS SIMPLIFICATION ACT OF

f1995

HON. PHILIP M. CRANE OF ILLINOIS

IN THE HOUSE OF REPRESENTATIVES

Monday, May 15, 1995

Mr. CRANE. Mr. Speaker, one of the issues

that the voters expect this Congress to address relates to the elimination of unnecessary

and burdensome Federal requirements and

regulations. In that spirit, I am today introducing legislation, the Nuclear Decommissioning

Costs Simplification Act of 1995, which will

take one small and reasonable step toward

simplifying our Tax Code.

Under current law, section 468A of the Internal Revenue Code permits a utility to elect a

deduction for the amount of payments made

to a nuclear decommissioning reserve fund.

The fund must be dedicated exclusively for the

payment of costs associated with decommissioning a nuclear power reactor. The amount

of the deductible payment for a particular tax

year is limited to the lesser of: first, the nuclear decommissioning cost included in the

taxpayer’s cost of service for ratemaking purposes or, second, the so-called ruling amount

as determined by the Internal Revenue Service [IRS]. In order to claim a deduction, the

taxpayer must submit a detailed application to

the IRS which sets forth the computation of

the ruling amount.

It has been indicated to me that the process

required by section 468A is the only provision

of the Internal Revenue Code in which a deduction is made conditional upon pre-approval

by the Secretary of the Treasury. Moreover,

preparation of each ruling request costs utilities thousands of dollars in legal and other

fees in addition to the $3,000 user fee imposed for filing the ruling request. In many

cases, utilities have more than one reactor, in

which case the utility must absorb the preparation costs and pay the filing fee several

times in a single year. For example, a taxpayer with four reactors that contributes to

four reserve funds would incur costs in excess

of $50,000 to submit four ruling requests.

Mr. Speaker, perhaps this unique pre-clearance procedure would be necessary if there

was a particular risk of fraud, abuse, or miscalculation. However, there is no evidence that

any such risk exists or ever has existed for

that matter. Nevertheless, the pre-clearance

requirement lives on in the Internal Revenue

Code. The time has come to recognize that

the process that utilities go through to comply

with section 468A is entirely computational,

and presents no unusual set of circumstances

requiring the abandonment of the normal rule

that taxpayers take deductions subject to a

subsequent audit.

The Nuclear Decommissioning Costs Simplification Act of 1995 is truly a simplification

proposal. The bill, if enacted, would modify

section 468A by striking the requirement that

the taxpayer must request and receive a

schedule of ruling amounts from the Secretary

of the Treasury as a condition to claiming a

deduction for payments to the nuclear decommissioning reserve fund. The bill would not result in larger deductions because the current

substantive rule limiting the deduction would

remain in place. The proposal simply would

have the effect of treating the deduction for

amounts paid into the fund in the same manner as other deductions are treated and if, on

audit, the IRS determines that an excess

amount was deducted by the utility, additional

tax payments, interest, and penalties would be

imposed.

Mr. Speaker, this reform may not be as dramatic as some others that we have debated in

the House this year, but it is no less worthy.

The bill I am introducing today is narrowly targeted to relieve utilities of a regulatory requirement that long ago outlived its usefulness. It

will neither create a tax loophole nor compromise safety, but it will strike a small blow

for sensible deregulation. I am hopeful that

this legislation will be considered in the context of tax legislation this year, and I urge my

colleagues to support this effort.

TRIBUTE TO PAT SCHNEIDER

fHON. THOMAS M. DAVIS OF VIRGINIA

IN THE HOUSE OF REPRESENTATIVES

Monday, May 15, 1995

Mr. DAVIS. Mr. Speaker, I rise today to pay

tribute to one of Fairfax County, VA’s outstanding public school teachers, Mrs. Pat

Schneider.

When the executive of a company retires,

special dinners, gold watches, and high accolades are the order of the day. However, when

some of our public servants retire, few seem

to notice.

In Fairfax County, one our school teachers,

after teaching for almost 35 years, is retiring at

the end of this school year. For 23 years,

Mosby Woods Elementary has been the benefit of Mrs. Pat Schneider’s excellent teaching

skills. Like most teachers, Mrs. Schneider has

worn many hats beyond that of the classroom

teacher. Before the 1994 school year and the

formal addition of a vice principal, Mrs.

Schneider would step in as acting principal

when needed. Involved with many extracurricular activities, Mrs. Schneider is best remembered as the teacher sponsor of the Student Council Association.

How does a teacher know if he or she has

effectively reached their classroom constituents? Of course, test and papers will reflect

the academic aspects of successful teaching.

However, beyond reaching a child’s mind, the

best teachers will also touch a child’s heart.

Mrs. Schneider’s success in reaching the

hearts of her students is quite evident as

former students are always dropping by her

classroom to say ‘‘hi’’ and grab a quick hug or

word of encouragement.

As Fairfax County loses a teacher of excellence and Mosby Woods a dear friend and

colleague, there are no gold watches or black

tie dinners but her community offers her a

heart felt ‘‘thank you,’’ and I know my colleagues join me in honoring her years of service to our kids and thank her for leaving her

community a better place for her efforts.

CHICAGO’S NORTHWEST ASSOCIATION OF REALTORS FIGHTS TO

fPROTECT THE HOME MORTGAGE

INTEREST DEDUCTION

HON. MICHAEL PATRICK FLANAGAN OF ILLINOIS

IN THE HOUSE OF REPRESENTATIVES

Monday, May 15, 1995

Mr. FLANAGAN. Mr. Speaker, a home purchase is the largest investment most American

families will ever make. American homeowners take pride in their properties and contribute to their communities. Real estate and

housing comprise the engine that drives America’s economy, accounting for 15 percent of

the gross domestic product.

The home mortgage interest deduction on

the homeowner’s Federal income tax return

has proven to be a strong incentive to invest

in the American dream of home ownership.

The home mortgage interest deduction is a

continuous, many decades old tax equalization

provision allowed by the Federal Government

to home owning American citizens. Eliminating, or further limiting, within the current Federal Tax Code, the home mortgage interest

deduction will surely result in a sharp decline

in property values and American homeowners

experiencing a significant drop in the value of

their homes. Eliminating, or further limiting,

within the current Federal Tax Code, the home

mortgage interest deduction will create a likelihood of a regional or national housing recession.

Depressed housing and real estate markets

would result in reduced local tax revenues and

less money for our communities to perform

such basic services as schools, sanitation, police protection, and firefighting. Depressed

housing and real estate markets would quickly

result in the need for higher local property

taxes. Eliminating, or further limiting, within the

Federal Tax Code, the home mortgage interest deduction will result in fewer people buying

homes and the destabilization of the foundation of our local communities.

The efforts of the officers, directors, staff

and members of Chicagoland’s Northwest Association of REALTORS to protect, within the

framework of the current Federal Tax Code,

the sanctity and integrity of the many decades

old home mortgage interest deduction is hereby duly noted. I urge my colleagues in the

House and Senate to take no legislative action

that would result, under the current Federal

Tax Code, in either further limiting, or eliminating, the home mortgage interest deduction afforded to American homeowners.

SCREENING FOR COLORECTAL

CANCER: THE PATIENT AND THE

fPHYSICIAN’S RIGHT TO CHOOSE

HON. LOUISE McINTOSH SLAUGHTER OF NEW YORK

IN THE HOUSE OF REPRESENTATIVES

Monday, May 15, 1995

Ms. SLAUGHTER. Mr. Speaker, I rise today

to discuss the Colorectal Cancer Screening

Act of 1995, and why I became a cosponsor