Modification to Special Rules for Nuclear Decommissioning Costs

Owners of nuclear power plants can claim a tax deduction for any payments made to a Nuclear Decommissioning Reserve Fund in a tax year. The fund is used to satisfy any liabilities associated with decommissioning a nuclear power plant, and the payments or transfers are deductible ratably over the estimated useful life of the power plant. A taxpayer can choose to establish a Nuclear Decommissioning Reserve Fund for each power plant and can transfer into the fund an amount equal to or less than the total amount for decommissioning the plant, lowering their overall tax liability.