[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1637 Introduced in House (IH)]







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 Representatives of the 
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Nuclear Decommissioning Costs 
Simplification Act of 1995''.

SEC. 2. SIMPLIFICATION OF DEDUCTION FOR NUCLEAR DECOMMISSIONING COSTS.

    (a) Repeal of Ruling Amount.--
            (1) In general.--Paragraph (2) of section 468A(b) of the 
        Internal Revenue Code of 1986 (relating 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 decommissioning 
        costs of the taxpayer with respect to the nuclear 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 guidelines prescribed by the Secretary.''
    (b) Treatment of Incorrect Funding.--Subsection (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 
                        deduction 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 includible 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 excess 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 increased 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.
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