Nuclear Decommissioning Reserve Fund Deduction

§ 468A. Special rules for nuclear decommissioning costs(a) In generalIf the taxpayer elects the application of this section, there shall be allowed as a deduction for any taxable year the amount of payments made by the taxpayer to a Nuclear Decommissioning Reserve Fund (hereinafter referred to as the “Fund”) during such taxable year. (b) Limitation on amounts paid into FundThe amount which a taxpayer may pay into the Fund for any taxable year shall not exceed the ruling amount applicable to such taxable year. (c) Income and deductions of the taxpayer(1) Inclusion of amounts distributedThere shall be includible in the gross income of the taxpayer for any taxable year—(A) any amount distributed from the Fund during such taxable year, other than any amount distributed to pay costs described in subsection (e)(4)(B), and (B) except to the extent provided in regulations, amounts properly includible in gross income in the case of any deemed distribution under subsection (e)(6), any termination under subsection (e)(7), or the disposition of any interest in the nuclear powerplant. (2) Deduction when economic performance occursIn addition to any deduction under subsection (a), there shall be allowable as a deduction for any taxable year the amount of the nuclear decommissioning costs with respect to which economic performance (within the meaning of section 461(h)(2)) occurs during such taxable year. (d) Ruling amountFor purposes of this section—(1) Request requiredNo deduction shall be allowed for any payment to the Fund unless the taxpayer requests, and receives, from the Secretary a schedule of ruling amounts. For purposes of the preceding sentence, the taxpayer shall request a schedule of ruling amounts upon each renewal of the operating license of the nuclear powerplant. (2) Ruling amountThe term “ruling amount” means, with respect to any taxable year, the amount which the Secretary determines under paragraph (1) to be necessary to—(A) fund the total nuclear decommissioning costs with respect to such power plant over the estimated useful life of such power plant, and (B) prevent any excessive funding of such costs or the funding of such costs at a rate more rapid than level funding, taking into account such discount rates as the Secretary deems appropriate. (3) Review of amountThe Secretary shall at least once during the useful life of the nuclear powerplant (or, more frequently, upon the request of the taxpayer) review, and revise if necessary, the schedule of ruling amounts determined under paragraph (1). (e) Nuclear Decommissioning Reserve Fund(1) In generalEach taxpayer who elects the application of this section shall establish a Nuclear Decommissioning Reserve Fund with respect to each nuclear powerplant to which such election applies.