[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2999 Introduced in House (IH)]


104th CONGRESS
  2d Session
                                H. R. 2999

To amend the Internal Revenue Code of 1986 to exclude certain severance 
                      payment amounts from income.


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                    IN THE HOUSE OF REPRESENTATIVES

                           February 29, 1996

Mr. Torricelli introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to exclude certain severance 
                      payment amounts from income.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXCLUSION FROM INCOME OF SEVERANCE PAYMENT AMOUNTS.

    (A) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by redesignating section 137 as section 
138 and by inserting after section 136 the following new section:

``SEC. 137. SEVERANCE PAYMENTS.

    ``(a) In General.--In the case of an individual, gross income shall 
not include any qualified severance payment.
    ``(b) Limitation.--The amount to which the exclusion under 
subsection (a) applies shall not exceed $50,000 with respect to any 
separation from employment.
    ``(c) Qualified Severance Payment.--For purposes of this section, 
the term `qualified severance payment' means any payment received by an 
individual if--
            ``(1) such payment was paid by such individual's employer 
        on account of such individual's separation from employment, and
            ``(2) such separation was in connection with a reduction in 
        the work force of the employer.''
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by striking the item 
relating to section 137 and inserting the following new items:

                              ``Sec. 137. Severance payments.
                              ``Sec. 138. Cross references to other 
                                        Acts.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.
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