I.R.C. § 192(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).
I.R.C. § 192(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—
I.R.C. § 192(b)(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
I.R.C. § 192(b)(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.
I.R.C. § 192(c) Special Rules
I.R.C. § 192(c)(1) Method Of Determining Amounts Referred To In Subsection (b)
I.R.C. § 192(c)(1)(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.
I.R.C. § 192(c)(1)(B) Funding Period —
Except as provided in subparagraph (C), the funding period for purposes of subsection (b)(1) shall be the greater of—
I.R.C. § 192(c)(1)(B)(i) —
the average remaining working life of miners who are present employees of the taxpayer,
or
I.R.C. § 192(c)(1)(B)(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)).
I.R.C. § 192(c)(1)(C) Different Funding Periods —
To the extent that—
I.R.C. § 192(c)(1)(C)(i) —
regulations prescribed by the Secretary provide for a different period, or
I.R.C. § 192(c)(1)(C)(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).
I.R.C. § 192(c)(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.
I.R.C. § 192(c)(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).
I.R.C. § 192(c)(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).
I.R.C. § 192(c)(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).
I.R.C. § 192(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.
I.R.C. § 192(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.
(Added Pub. L. 95-227, 4(b)(1), Feb. 10, 1978, 92 Stat. 16, and amended Pub. L. 95-488, 1(a)-(c), Oct. 20, 1978, 92 Stat. 1637; Pub. L. 96-222, title I, 108(b)(2)(B), Apr. 1, 1980, 94 Stat. 226; Pub. L. 102-486, Sec. 1940(c), Oct. 24, 1992.)
BACKGROUND NOTES
AMENDMENTS
1992—Subsec. (c)(4). Pub. L. 102-486, Sec. 1940(c), amended par. (4) by substituting “subclause (II) of section 501(c)(2)(A)(ii)” for
“clause (ii) of section 501(c)(21)(B)”.
1980--Subsec. (e). Pub. L. 96-222 substituted “Federal Mine Safety and Health Act of 1977” for “Federal Coal Mine Health
and Safety Act of 1969”.
1978--Subsec. (b). Pub. L. 95-488, 1(a), substituted provision limiting the allowable deduction to the greater of the
amount necessary to fund the remaining unfunded liability of the taxpayer for the
black lung claims filed or expected to be filed by past or present employees of the
taxpayer or 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 for provision limiting the allowable deduction to the amount necessary,
when added to the fair market value of trust assets at the beginning of the taxable
year, to fund the greater of current year obligations or certain future obligations.
Subsec. (c)(1). Pub. L. 95-488, 1(b), substituted “Method of determining amounts referred to in subsection (b)”
for “Determination of expected future payments” in heading and in text inserted provisions
establishing the funding period as the greater of the average remaining working life
of miners who are present employees of the taxpayer or 10 taxable years and permitting
a different funding period if prescribed or consented to by the Secretary.
Subsec. (c)(5). Pub. L. 95-488, 1(c), added par. (5).
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Section 1940(c) of Pub. L. 102-486 effective for taxable years beginning after December 31, 1992.
EFFECTIVE DATE OF 1980 AMENDMENT
Section 108(b)(4) of Pub. L. 96-222 provided that: “Any amendment made by this subsection [amending sections 192, 6503,
6511, 6862, 7422, and 7454 of this title and sections 934 and 934a of Title 30, Mineral
Lands and Mining] shall take effect as if included in the provision of the Black Lung
Benefits Revenue Act of 1977 [see Short Title of 1978 Amendments note set out under
section 1 of this title]
to which such amendment relates.”
EFFECTIVE DATE OF 1978 AMENDMENT
Section 1(e) of Pub. L. 95-488, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “The amendments made by this section
[amending this section and section 6104 of this title]
shall apply to taxable years beginning after December 31, 1977. Nothing in the amendments
made by subsection (d) to section 6104 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] shall be construed to permit the disclosure under such section 6104 of confidential
business information of contributors to any trust described in section 501(c)(21)
of such Code.”
EFFECTIVE DATE
Section 4(f) of Pub. L. 95-227 provided that: “The amendments made by this section
[enacting sections 192, 4951 to 4953 and amending sections 501, 4946, 6104, 6213,
6405, 6501, 6503, and 7451 of this title] shall apply with respect to contributions,
acts, and expenditures made after December 31, 1977, in and for taxable years beginning
after such date.”
