Taxpayer and Environment Protection Act of 1989

Taxpayer and Environment Protection Act of 1989 - Amends the Internal Revenue Code to deny any deduction for loss from abandonment of a nuclear power plant if: (1) the taxpayer constructed or purchased such nuclear power plant which was granted a full power operating license by the Nuclear Regulatory Commission; (2) such taxpayer abandoned the plant; and (3) a State utility regulatory body permits the taxpayer any rate increase directly or indirectly related to such abandonment or sale.

Provides that a transitional rule with respect to tax-exempt bond provisions under the Revenue Act of 1987 shall not apply to any bond unless the proceeds from the issuance of such bond are to be used to finance the acquisition of an operating facility.