Taxation of expenditures required by the Surface Mining Control and Reclamation Act of 1977 (SMCRA)
There has been disagreement over whether the expenditures made by the mine operator to comply with the Surface Mining Control and Reclamation Act of 1977 are characterized as capital or deductible expenses. An examination of expenditures made by mine operators during the life of a mine illustrates the dichotomy between deductible and capital expenditures in which special rules may override general capitalization rules to allow the mine operator to deduct a capital expenditure. This makes some expenditures difficult to categorize. Citing case law, the author treats expenditures for exploration and mining permits, performance bonds, and liability insurance. A new provision, section 468, allowing the current deduction for future reclamation and closing costs removed the uncertainty created by prior case law.
- OSTI ID:
- 6671710
- Journal Information:
- J. Miner. Law Pol.; (United States), Journal Name: J. Miner. Law Pol.; (United States) Vol. 2:1; ISSN JMLPE
- Country of Publication:
- United States
- Language:
- English
Similar Records
Surface mining: Cost and availability of reclamation bonds
Federal oversight of alternative bond systems under SMCRA (Surface Mining Control and Reclamation Act)
Related Subjects
017000* -- Coal
Lignite
& Peat-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
294001 -- Energy Planning & Policy-- Coal
ACCOUNTING
CASE LAW
COST
LAWS
LEGAL ASPECTS
MINING
MINING LAWS
OPERATING COST
SURFACE MINING
SURFACE MINING ACTS
TAX LAWS
TAXES