PUBLIC LAW 95-488—OCT. 20, 1978
92 STAT. 1637
Public Law 95-488 95th Congress An Act To amend the Internal Revenue Code of 1954 to insure that the deduction for contributions to a black lung benefit trust be allowed for any such contributions which are made for the purpose of satisfying unfimded future liability, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) subsection (b) of section 192 of the Internal Revenue Code of 1954 (relating to contributions to black lung benefit trusts) is amended to read as follows: " (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." (b) Paragraph (1) of section 192(c) of such Code (relating to special rules) is amended to read as follows:
Oct. 20, 1978 [H.R. 13167]
Taxes. Deductions for contributions to a black lung benefit trust. 26 USC 192.
26 USC 501. 26 USC 192.
"(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 subpara-
graph (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 "Miner. 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). " (c) Subsection (c) of section 192 of such Code is amended by adding at the end thereof the following new paragraph: "(5) DENIAL OF SECTION 162 DEDUCTION WITH RESPECT TO LIABIL- 26 USC 162.
ITY.—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)."
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