Page:United States Statutes at Large Volume 98 Part 1.djvu/651

 PUBLIC LAW 98-369—JULY 18, 1984 ^

"(C) ORDER OF APPLICATION.—This paragraph shall be

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98 STAT. 603

applied after all adjustments to the reserve have been made for the taxable year. "(5) INCOME INCLUSIONS ON COMPLETION OR DISPOSITION.—

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Proper inclusion in income shall be made upon— "(A) the revocation of an election under paragraph (1), or "(B) completion of the closing, or disposition of any portion, of a reserve property.

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"(b) ALLOCATION FOR PROPERTY WHERE ELECTION NOT I N EFFECT

FOR ALL TAXABLE YEARS.—If the election under subsection (a)(1) is not in effect for 1 or more taxable years in which the reserved property is disturbed (or production occurs), items with respect to the reserve property shall be allocated to the reserve in such manner as the Secretary may prescribe by regulations. "(c) REVOCATION OF ELECTION; SEPARATE RESERVES.— "(1) REVOCATION OF ELECTION.—

"(A) IN GENERAL.—The taxpayer may revoke an election under subsection (a)(1) with respect to any property. Such revocation, once made, shall be irrevocable. "(B) TIME AND MANNER OF REVOCATION.—Any revocation under subparagraph (A) shall be made at such time and in such manner as the Secretary may prescribe. "(2) SEPARATE RESERVES REQUIRED.—If a taxpayer makes an election under subsection (a)(1), the taxpayer shall establish with respect to the property for which the election was made— "(A) a separate reserve for qualified reclamation costs, and "(B) a separate reserve for qualified closing costs.

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"(d) DEFINITIONS AND SPECIAL RULES RELATING TO RECLAMATION

AND CLOSING COSTS.—For purposes of this section—

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"(1) CURRENT RECLAMATION AND CLOSING COSTS.— "(A) CURRENT RECLAMATION COSTS.—The-term 'current

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reclamation costs' means the amount which the taxpayer would be required to pay for qualified reclamation costs if the reclamation activities were performed currently.

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"(B) CURRENT CLOSING COSTS.—

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"(i) IN GENERAL.—The term 'current closing costs' means the amount which the taxpayer would be required to pay for qualified closing costs if the closing activities were performed currently. "(ii) COSTS COMPUTED ON UNIT-OF-PRODUCTION OR CAPACITY METHOD.—Estimated closing costs shall—

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"(I) in the case of the closing of any mine site, be computed on the unit-of-production method of acly '/... counting, and "(II) in the case of the closing of any solid waste disposal site, be computed on the unit-of-capacity •'-''-'• method. "(2) QUALIFIED RECLAMATION OR CLOSING COSTS.—The term 'qualified reclamation or closing costs' means any of the following expenses: "(A) MINING RECLAMATION AND CLOSING COSTS.—Any ex-

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penses incurred for any land reclamation or closing activity which is conducted in accordance with a reclamation plan (including an amendment or modification thereof)— "(i) which—

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