SECTION 3. DEFINITIONS

.01 Accelerated deduction. The accelerated deduction for a taxable year is the amount of benefits accrued by the taxpayer for the taxable year that became secured during the first 2 ¹ ⁄2 months after the end of that taxable year but were not actually received by its employees within that 2 ¹ ⁄2-month period.

.02 Excess accelerated deduction. The excess accelerated deduction for a taxable year is the accelerated deduction for the taxable year less the amount of the accelerated deductions for prior taxable years that were actually received by employees during the taxable year (if vacation pay) or during the employees’ taxable year ending with or within the taxable year (if benefits other than vacation pay). However, the excess accelerated deduction for the first taxable year covered by a settlement under this revenue procedure is equal to the accelerated deduction for the taxable year.