PUBLIC LAW 98-369—JULY 18, 1984 1 -
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98 STAT. 601
related to such person within the meaning of section 168(e)(4)), or "(II) was secured by any assets of the partnership. "(D) SPECIAL CASH BASIS RULE FOR SPUDDING OF OIL OR GAS
WELLS.—Solely for purposes of applying subparagraph (A), ,.^l economic performance with respect to the act of drilling of an oil or gas well shall be treated as occurring when the drilling of the well is commenced. "(3) TAX SHELTER DEFINED.—For purposes of this subsection, the term 'tax shelter' means— "(A) any enterprise (other than a C corporation) if at any time interests in such enterprise have been offered for sale in any offering required to be registered with any Federal or State agency having the authority to regulate the offer:8t SIB- ing of securities for sale, f^ "(B) any syndicate (within the meaning of section 1256(e)(3)(B)), and ,T/> "(C) any tax shelter (within the meaning of section 6661(b)(2)(C)(ii)). "(4) SPECIAL RULES FOR FARMING.—In the case of the trade or business of farming (as defined in section 464(e))— "(A) section 464 shall be applied to any tax shelter described in paragraph (3)(C), . "(B) section 464 shall be applied before this subsection, 9, and "(C) in determining whether an entity is a tax shelter, the ijlf^i definition of farming syndicate in section 464(c) shall be substituted for subparagraphs (A) and (B) of paragraph (3). 31 "(5) ECONOMIC PERFORMANCE.—For purposes of this subsection, the term 'economic performance' has the meaning given such term by subsection (h)."
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(b) SPECIAL RULES FOR MINING AND SOLID WASTE RECLAMATION AND CLOSING COSTS.—
(1) IN GENERAL.—Subpart C of part II of subchapter E of chapter 1 (relating to taxable year for which deduction taken), as amended by section 92, is amended by adding at the end thereof the following new section: "SEC. 468. SPECIAL RULES FOR MINING AND SOLID WASTE RECLAMATION AND CLOSING COSTS. "(a) ESTABLISHMENT OF RESERVES FOR RECLAMATION AND CLOSING COSTS.— "(1) ALLOWANCE OF DEDUCTION.—If a taxpayer elects the a p
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plication of this subsection with respect to any mining or solid waste disposal property, the amount of any deduction for qualified reclamation or closing costs for any taxable year to which such election applies shall be equal to the current reclamation or closing costs allocable to— "(A) in the case of qualified reclamation costs, the portion of the reserve property which was disturbed during such taxable year, and "(B) in the case of qualified closing costs, the production from the reserve property during such taxable year. "(2) OPENING BALANCE AND ADJUSTMENTS TO RESERVE.—
"(A) OPENING BALANCE.—The opening balance of any
reserve for its first taxable year shall be zero.
26 USC 468.
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