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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Nuclear Decommis-
sioning Costs Simplification Act of 1995’’.
SEC. 2. SIMPLIFICATION OF DEDUCTION FOR NUCLEAR DE-
COMMISSIONING COSTS.
(a) REPEAL OF RULING AMOUNT.—
(1) IN
GENERAL.—Paragraph (2) of section
468A(b) of the Internal Revenue Code of 1986 (re-
lating to limitation on amounts paid into fund) is
amended to read as follows:
‘‘(2) the scheduled amount applicable to such
taxable year.’’
(2) SCHEDULED AMOUNT.—Subsection (d) of
section 468A of such Code is amended to read as
follows:
‘‘(d) SCHEDULED AMOUNT.—For purposes of this
section, the term ‘scheduled amount’ means, with respect
to any taxable year, the amount necessary to—
‘‘(1) fund that portion of the nuclear decommis-
sioning costs of the taxpayer with respect to the nu-
clear powerplant which bears the same ratio to the
total nuclear decommissioning costs with respect to
such nuclear powerplant as the period for which the
Fund is in effect bears to the estimated useful life
of such nuclear powerplant, and
‘‘(2) prevent any excessive funding of such costs
or the funding of such costs at a rate more rapid
than level funding, taking into account appropriate
discount rates, determined in accordance with guide-
lines prescribed by the Secretary.’’
(b) TREATMENT
OF INCORRECT FUNDING.—Sub-
section (e) of section 468A of such Code is amended by
adding at the end the following new paragraph:
‘‘(8) TREATMENT OF INCORRECT FUNDING.—
‘‘(A) EXCESS CONTRIBUTION.—If there is
a final determination that the amount shown on
the return as the deduction under subsection
(a) for any taxable year exceeded the amount
allowable as a deduction for such taxable
year—
‘‘(i) such excess shall be treated for
purposes of this chapter as allowable as a
deduction under subsection (a) for such
taxable year,
‘‘(ii) the Fund shall be allowed a de-
duction for the Fund’s taxable year in
which such determination becomes final in
an amount equal to the aggregate earnings
attributable to such excess which were in-
cludible in the gross income of the Fund
for all preceding taxable years, and
‘‘(iii) the limitation under subsection
(b) for the taxpayer’s taxable year in which
such determination becomes final shall be
reduced by the sum of such excess and
such earnings.
If the reduction required under clause (iii) for
any taxable year exceeds the limitation under
subsection (b) for such year, such limitation
shall not be reduced below zero, and such ex-
cess shall applied to reduce such limitation for
succeeding taxable years.
‘‘(B) 
CONTRIBUTION
SHORTFALL.—If
there is a final determination that the amount
allowable as a deduction under subsection (a)
for any taxable year exceeds the amount shown
on the return as the deduction under subsection
(a) for such taxable year, the limitation under
subsection (b) for the taxable year in which
such determination becomes final shall be in-
creased by the amount of such excess.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
the date of the enactment of this Act.
Æ