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Title 26 — Internal Revenue CodeRelease 119-73

§192 Contributions to black lung benefit trust

Title 26 › Subtitle Subtitle A— - Income Taxes › Chapter CHAPTER 1— - NORMAL TAXES AND SURTAXES › Subchapter Subchapter B— - Computation of Taxable Income › Part PART VI— - ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS › § 192

Last updated Apr 6, 2026|Official source

Summary

Taxpayers may deduct the money they put into trusts described in 501(c)(21) for the taxable year. The biggest deduction allowed each year is the larger of (1) the amount needed to fund, with level payments, the taxpayer’s remaining unpaid liability for black lung claims filed or expected from past or present employees, or (2) the amount needed to raise each 501(c)(21) trust to the level required to pay all amounts the trust must pay that year. Those amounts must be worked out with reasonable actuarial methods that follow the Secretary’s rules. The funding period is the greater of the average remaining working life of current miner employees or 10 taxable years, unless the Secretary’s rules or the Secretary’s permission allow a different period. Only claims expected to be paid from the trust are counted. A payment counts for a taxable year if it is made on account of that year by the time the tax return (including extensions) is due. Deductions are allowed only for cash or for investments the trust is allowed to hold. Any amount that exceeds the yearly limit can be carried forward to the next year. You cannot also deduct the same liability under section 162(a). "Black lung benefit claim" means a claim for pay for disability or death from pneumoconiosis under part C of title IV of the Federal Mine Safety and Health Act of 1977 or under a State law that provides such pay.

Full Legal Text

Title 26, §192

Internal Revenue Code — Source: USLM XML via OLRC

(a)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).
(b)The maximum amount of the deduction allowed by subsection (a) for any taxpayer for any taxable year shall not exceed the greater of—
(1)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
(2)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.
(c)(1)(A)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.
(B)Except as provided in subparagraph (C), the funding period for purposes of subsection (b)(1) shall be the greater of—
(i)the average remaining working life of miners who are present employees of the taxpayer, or
(ii)10 taxable years.
(C)To the extent that—
(i)regulations prescribed by the Secretary provide for a different period, or
(ii)the Secretary consents to a different period proposed by the taxpayer,
(2)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.
(3)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)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).
(5)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).
(d)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)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

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Federal Mine Safety and Health Act of 1977, referred to in subsec. (e), is Pub. L. 91–173, Dec. 30, 1969, 83 Stat. 742, as amended by Pub. L. 95–164, Nov. 9, 1977, 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.

Amendments

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), Oct. 24, 1992, 106 Stat. 3035, provided that: “The

Amendments

made by this section [amending this section and section 501 and 4951 of this title] shall apply to taxable years beginning after December 31, 1991.”

Effective Date

of 1980 Amendment Pub. L. 96–222, title I, § 108(b)(4), Apr. 1, 1980, 94 Stat. 226, provided that: “Any amendment made by this subsection [amending this section, section 6503, 6511, 6862, 7422, and 7454 of this title, and section 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), Oct. 20, 1978, 92 Stat. 1638, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 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 December 31, 1977. 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), Feb. 10, 1978, 92 Stat. 24, provided that: “The

Amendments

made by this section [enacting this section and sections 4951 to 4953 and amending section 501, 4946, 6104, 6213, 6405, 6501, 6503, and 7451 of this title] shall apply with respect to contributions, acts, and expenditures made after December 31, 1977, in and for taxable years beginning after such date.”

Reference

Citations & Metadata

Citation

26 U.S.C. § 192

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73