Sulfur and Nitrogen Emissions Tax Act of 1987

Sulfur and Nitrogen Emissions Tax Act of 1987 - Amends the Internal Revenue Code to impose an excise tax, at a rate based on the amount of pollutant emitted, on emissions of sulfur dioxide and nitrogen oxides from certain fossil fuel-burning boilers. Provides that such tax: (1) be phased in over a two-year period; and (2) be adjusted annually for inflation after 1990. Fixes the liability for the tax on the person owning or operating the taxable boiler. Exempts certain boilers from the tax.

Sets forth the methodology for determining the amount of pollutants emitted, generally to be measured by a qualified continuous emissions monitoring device.

Permits: (1) a quarterly credit against the emissions tax for costs of the taxpayer's qualified pollution equipment, based on ratable depreciation over ten years; and (2) an income tax deduction for emissions tax payments.

Establishes in the Treasury the Sulfur and Nitrogen Emissions Trust Fund (SANE Trust Fund) to receive emissions excise tax revenue. Permits expenditures from this fund to: (1) assist taxpayers subject to the emissions tax in reducing their taxable emissions; and (2) pay administrative costs related to the emissions tax.

Authorizes repayable advances to the SANE Fund. Sets limits and conditions to govern such borrowing.