26 U.S.C. § 192 : US Code - Section 192: Contributions to black lung benefit trust

Search 26 U.S.C. § 192 : US Code - Section 192: Contributions to black lung benefit trust

(a) Allowance of deduction
There 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) Limitation
The 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 general
The 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 period
Except 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 periods
To 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 account
In 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 made
For 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 items
No 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).
(5) Denial of section 162 deduction with respect to liability
No deduction shall be allowed under section 162(a) with respect
to any liability taken into account in determining the deduction
under subsection (a) of this section of the taxpayer (or a
predecessor).
(d) Carryover of excess contributions
If the amount of the deduction determined under subsection (a)
for the taxable year (without regard to the limitation imposed by
subsection (b)) with respect to a trust exceeds the limitation
imposed by subsection (b) for the taxable year, the excess shall be
carried over to the succeeding taxable year and treated as
contributed to the trust during that year.
(e) Definition of black lung benefit claim
For purposes of this section, the term "black lung benefit claim"
means a claim for compensation for disability or death due to
pneumoconiosis under part C of title IV of the Federal Mine Safety
and Health Act of 1977 or under any State law providing for such
compensation.