Nuclear Decommissioning Tax

Troutman Sanders’ Nuclear Decommissioning Tax lawyers are widely recognized as leaders in the taxation of nuclear decommissioning trust funds. Our lawyers have worked closely with leading energy companies and trade associations, the Treasury Department, and the Joint Committee on Taxation on developing legislation and regulations in this highly specialized area of the tax law.

Lawyers in the group regularly develop, recommend and review tax planning strategies involving nuclear decommissioning trust funds. We have extensive experience advising clients regarding the acquisition and disposition of nuclear power plants and the associated transfers of nuclear decommissioning trust funds. We also have extensive experience advising clients on complex tax accounting issues pertaining to nuclear decommissioning trust funds as well as general tax planning issues implicating such funds. We regularly secure private letter rulings from the IRS and draft legal opinions on these issues. We also secure private letter rulings necessary for making scheduled annual contributions to qualified nuclear decommissioning trust funds and for making “pour over” contributions from nonqualified funds or other sources.

In addition, the Troutman Sanders Utility Tax team publishes the Washington Developments Tax Service newsletter, which provides up-to-the-minute reports on all utility-related tax issues, including nuclear decommissioning tax issues. Please contact Howard Cooper, (202) 274-2878, , for more information on tax developments.

Representative Experience

  • Represented an electric utility holding company in connection with the disposition of a nuclear power plant and its associated nuclear decommissioning trust funds; secured an IRS letter ruling on the tax consequences of the disposition under Section 468A; secured a separate IRS letter ruling concluding that certain sale proceeds were not includible in income under Section 61.
  • Represented an electric utility holding company in connection with an internal reorganization and subsequent multiple pour over contributions from nonqualified nuclear decommissioning trust funds to qualified decommissioning trust funds; secured IRS letter rulings on the tax consequences of the reorganization; drafted amendments to the trust agreements to allow for in-kind pour over contributions; secured IRS letter rulings allowing the pour over contributions; issued a legal opinion on the consequences of the transactions on the company’s estimated tax payment obligations.
  • Represented an electric utility holding company in connection with securing from the IRS a Schedule of Ruling Amounts for a qualified fund associated with a nuclear power plant unit that was not historically subject to local, cost-based rate regulation.
More + Less -
PrintPDF

Contact