Black Lung Benefit Trust Contribution Deduction

§ 192. Contributions to black lung benefit trust(a) Allowance of deductionThere is allowed as a deduction for the taxable year an amount equal to the sum of the amounts contributed by the taxpayer during the taxable year to or under a trust or trusts described in section 501(c)(21). (b) LimitationThe maximum amount of the deduction allowed by subsection (a) for any taxpayer for any taxable year shall not exceed the greater of—(1) the amount necessary to fund (with level funding) the remaining unfunded liability of the taxpayer for black lung claims filed (or expected to be filed) by (or with respect to) past or present employees of the taxpayer, or (2) the aggregate amount necessary to increase each trust described in section 501(c)(21) to the amount required to pay all amounts payable out of such trust for the taxable year. (c) Special rules(1) Method of determining amounts referred to in subsection (b)(A) In generalThe amounts described in subsection (b) shall be determined by using reasonable actuarial methods and assumptions which are not inconsistent with regulations prescribed by the Secretary. (B) Funding periodExcept as provided in subparagraph (C), the funding period for purposes of subsection (b)(1) shall be the greater of—(i) the average remaining working life of miners who are present employees of the taxpayer, or (ii) 10 taxable years. For purposes of the preceding sentence, the term “miner” has the same meaning as such term has when used in section 402(d) of the Black Lung Benefits Act (30 U.S.C. 902(d)). (C) Different funding periodsTo the extent that—(i) regulations prescribed by the Secretary provide for a different period, or (ii) the Secretary consents to a different period proposed by the taxpayer, such different period shall be substituted for the funding period provided in subparagraph (B). (2) Benefit payments taken into accountIn determining the amounts described in subsection (b), only those black lung benefit claims the payment of which is expected to be made from the trust shall be taken into account. (3) Time when contributions deemed madeFor purposes of this section, a taxpayer shall be deemed to have made a payment of a contribution on the last day of a taxable year if the payment is on account of that taxable year and is made not later than the time prescribed by law for filing the return for that taxable year (including extensions thereof). (4) Contributions to be in cash or certain other itemsNo deduction shall be allowed under subsection (a) with respect to any contribution to a trust described in section 501(c)(21) other than a contribution in cash or in items in which such trust may invest under subclause (II) of section 501(c)(21)(A)(ii).