Title 26 — Internal Revenue Code
Part VI · Chapter 1 — Normal Taxes and Surtaxes
§ 192. Contributions to black lung benefit trust
Statutory text
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).
Limitation
The maximum amount of the deduction allowed by subsection (a) for any taxpayer for any taxable year shall not exceed the greater of—
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
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.
Special rules
Method of determining amounts referred to in subsection (b)
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.
Funding period
Except as provided in subparagraph (C), the funding period for purposes of subsection (b)(1) shall be the greater of—
the average remaining working life of miners who are present employees of the taxpayer, or
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)).
Different funding periods
To the extent that—
regulations prescribed by the Secretary provide for a different period, or
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).
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.
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).
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).
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).
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.
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.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Black Lung Benefits Revenue Act of 1977
Pub. L. 95–227 § 4(b)(1) · 92 Stat. 11
Enacted · 26 U.S.C. § 192
Added Pub. L. 95–227, § 4(b)(1), Feb. 10, 1978, 92 Stat. 16
Source evidence
Code source credit
Added Pub. L. 95–227, § 4(b)(1), Feb. 10, 1978, 92 Stat. 16Enacted provision · exact public law section
(1) In general.— Part VI of subchapter B of chapter 1 of such Code (relating to itemized deductions for individuals and corporations) is amended by adding at the end thereof the following new section: “SEC. 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 Ante, p. 15. or trusts described in section 501 (c)(21). “(b) Limitation.— “(1) In general.— The amount of the deduction allowed by subsection (a) for any taxable year with respect to any such trust shall not exceed the amount determined under paragraph (2) or (3), whichever is greater. “(2) Current year obligations.— The amount determined under this paragraph for the taxable year is the amount which, when added to the fair market value of the assets of the trust as of the beginning of the taxable year, is necessary to carry out the purposes of the trust described in subparagraph (A) of section 501(c)(21) for the taxable year. “(3) Certain future obligations.— The amount determined under this paragraph for the taxable year is the sum of— “(A) the amount which is necessary to meet the expenses of the trust described in clause (iii) of section 501(c)(21)(A) Ante, p. 15. for the taxable year, and “(B) the lesser of— “(i) the amount which, when added to the fair market value of the assets of the trust as of the beginning of the taxable year, is necessary to provide all expected future payments with respect to black lung benefit claims which are approved, including any such claims which have been filed and which have not been disapproved, as of the end of the taxable year, or “(ii) twice the amount which is necessary to provide all expected future payments with respect to the greater of— “(I) black lung benefit claims filed during the taxable year or any one of the 3 immediately preceding taxable years, or “(II) such claims approved during any one of those 4 taxable years. “(c) Special Rules.— “(1) Determination of expected future payments.— The amounts described in subsection (b) shall be determined by using reasonable actuarial assumptions which are not inconsistent with regulations prescribed by the Secretary. “(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 t rust 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 clause (ii) of section 501(c)(21)(B). “(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 sect ion, 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 Coal Mine Health and Safety Act of 1969 30 USC 931. or under any State law providing for such compensation.”.Pub. L. 95–488 § 1(a) · 92 Stat. 1637
Substituted · 26 U.S.C. § 192(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
Source evidence
Code amendment note
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.Enacted provision · exact public law section
(1) The first sentence of subparagraph (A) of section 6104(a) 26 USC 6104. (1) of such Code (relating to inspection of applications for tax exemption) is amended by striking out “(other than in paragraph (21) thereof)”.Pub. L. 95–488 § 1(b) · 92 Stat. 1637
Substituted · 26 U.S.C. § 192(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
Source evidence
Code amendment note
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.Enacted provision · exact public law section
(1) The first sentence of subparagraph (A) of section 6104(a) 26 USC 6104. (1) of such Code (relating to inspection of applications for tax exemption) is amended by striking out “(other than in paragraph (21) thereof)”.Pub. L. 95–488 § 1(c) · 92 Stat. 1637
Added · 26 U.S.C. § 192(c)(5)
Pub. L. 95–488, § 1(c), added par. (5)
Source evidence
Code amendment note
Subsec. (c)(5). Pub. L. 95–488, § 1(c), added par. (5).Enacted provision · exact public law section
(1) The first sentence of subparagraph (A) of section 6104(a) 26 USC 6104. (1) of such Code (relating to inspection of applications for tax exemption) is amended by striking out “(other than in paragraph (21) thereof)”.Technical Corrections Act of 1979
Pub. L. 96–222 title I § 108(b)(2)(B) · 94 Stat. 194
Substituted · 26 U.S.C. § 192(e)
Pub. L. 96–222 substituted “Federal Mine Safety and Health Act of 1977” for “Federal Coal Mine Health and Safety Act of 1969”
Source evidence
Code amendment note
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”.Enacted provision · exact public law section
(B) Sections 501(c)(21) and 192(e) are each amended by striking out “Federal Coal Mine Health and Safety Act of 1969” and inserting in lieu thereof “Federal Mine Safety and Health Act of 1977”.Energy Policy Act of 1992
Pub. L. 102–486 title XIX § 1940(c) · 106 Stat. 2776
Substituted · 26 U.S.C. § 192(c)(4)
Pub. L. 102–486 substituted “subclause (II) of section 501(c)(21)(A)(ii)” for “clause (ii) of section 501(c)(21)(B)”
Source evidence
Code amendment note
Subsec. (c)(4). Pub. L. 102–486 substituted “subclause (II) of section 501(c)(21)(A)(ii)” for “clause (ii) of section 501(c)(21)(B)”.Enacted provision · exact public law section
(c) Technical Amendment.— Paragraph (4) of section 192(c) is amended by striking “clause (ii) of section 501(c)(21)(B)” and inserting “subclause (II) of section 501(c)(21)(A)(ii)”.Effective date note
Pub. L. 102–486, title XIX, § 1940(d), Oct. 24, 1992, 106 Stat. 3035, provided that: “The amendments made by this section [amending this section and sections 501 and 4951 of this title] shall apply to taxable years beginning after December 31, 1991.”
6 of 6 references resolved to an enrolled provision
Editorial Notes
References in Text
The Federal Mine Safety and Health Act of 1977, referred to in subsec. (e), is Pub. L. 91–173, , 83 Stat. 742, as amended by Pub. L. 95–164, , 91 Stat. 1290. Part C of title IV of the Federal Mine Safety and Health Act of 1977 is classified generally to part C of subchapter IV of chapter 22 (§ 931 et seq.) of Title 30, Mineral Lands and Mining. For complete classification of this Act to the Code, see Short Title note set out under section 801 of Title 30 and Tables.
Amendments1978–1992 · 3 rounds
1992
Subsec. (c)(4). Pub. L. 102–486 substituted “subclause (II) of section 501(c)(21)(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).
Statutory Notes and Related Subsidiaries
Effective Date of 1992 Amendment
Pub. L. 102–486, title XIX, § 1940(d), , 106 Stat. 3035, provided that: “The amendments made by this section [amending this section and sections 501 and 4951 of this title] shall apply to taxable years beginning after .”
Effective Date of 1980 Amendment
Pub. L. 96–222, title I, § 108(b)(4), , 94 Stat. 226, provided that: “Any amendment made by this subsection [amending this section, sections 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
Pub. L. 95–488, § 1(e), , 92 Stat. 1638, as amended by Pub. L. 99–514, § 2, , 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 . 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
Pub. L. 95–227, § 4(f), , 92 Stat. 24, provided that: “The amendments made by this section [enacting this section and sections 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 , in and for taxable years beginning after such date.”
Credits
1978–1992 · 4 acts
- 1978Added Pub. L. 95–227, § 4(b)(1), , 92 Stat. 16
- 1978amended Pub. L. 95–488, § 1(a)–(c), , 92 Stat. 1637
- 1980Pub. L. 96–222, title I, § 108(b)(2)(B), , 94 Stat. 226
- 1992Pub. L. 102–486, title XIX, § 1940(c), , 106 Stat. 3035.
Show as published
(Added Pub. L. 95–227, § 4(b)(1), , 92 Stat. 16; amended Pub. L. 95–488, § 1(a)–(c), , 92 Stat. 1637; Pub. L. 96–222, title I, § 108(b)(2)(B), , 94 Stat. 226; Pub. L. 102–486, title XIX, § 1940(c), , 106 Stat. 3035.)