AMORTIZATION OF PAST SERVICE PENSION COSTS.

SEC. 10204. AMORTIZATION OF PAST SERVICE PENSION COSTS. (a) In General.— For purposes of sections 263A and 460 of the Internal Revenue Code of 1986, the allocable costs (within the meaning of section 263A(a)(2) or section 460(c) of such Code, whichever is applicable) with respect to any property shall include contributions paid to or under a pension or annuity plan whether or not such contributions represent past service costs. (b) Effective Date.— (1) In general.— Except as provided in paragraph (2), subsection (a) shall apply to costs incurred after December 31, 1987, in taxable years ending after such date. (2) Special rule for inventory property.— In the case of any property which is inventory in the hands of the taxpayer— (A) In general.— Subsection (a) shall apply to taxable years beginning after December 31, 1987. (B) Change in method of accounting.— If the taxpayer is required by this section to change its method of accounting for any taxable year— (i) such change shall be treated as initiated by the taxpayer, (ii) such change shall be treated as made with the consent of the Secretary of the Treasury or his delegate, and (ii) the net amount of adjustments required by section 481 of the Internal Revenue Code of 1986 shall be taken into account over a period not longer than 4 taxable years.