• Nuclear Decommissioning Funds
  • October 4, 2010 | Author: Jasper L. Cummings
  • Law Firm: Alston & Bird LLP - Raleigh Office
  • The purchase and sale of a nuclear plant presents complicated tax issues arising out of the fact that the plant owner is obligated to decommission the plant and provide site cleanup in the future. The seller usually transfers to the buyer both a qualified and a nonqualified decommissioning fund. The qualified fund is one into which tax deductible contributions can be made. The nonqualified fund is more like a sinking fund.