[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 393 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 393

To clarify the tax treatment of certain disability benefits received by 
                former police officers or firefighters.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 5, 1997

Mr. Dodd (for himself and Mr. Lieberman) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To clarify the tax treatment of certain disability benefits received by 
                former police officers or firefighters.

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

SECTION 1. TREATMENT OF CERTAIN DISABILITY BENEFITS RECEIVED BY FORMER 
              POLICE OFFICERS OR FIREFIGHTERS.

    (a) General Rule.--For purposes of determining whether any amount 
to which this section applies is excludable from gross income under 
section 104(a)(1) of the Internal Revenue Code of 1986, the following 
conditions shall be treated as personal injuries or sickness in the 
course of employment:
            (1) Heart disease.
            (2) Hypertension.
    (b) Amounts To Which Section Applies.--This section shall apply to 
any amount--
            (1) which is payable--
                    (A) to an individual (or to the survivors of an 
                individual) who was a full-time employee of any police 
                department or fire department which is organized and 
                operated by a State, by any political subdivision 
                thereof, or by any agency or instrumentality of a State 
                or political subdivision thereof, and
                    (B) under a State law (as in existence on July 1, 
                1992) which irrebuttably presumed that heart disease 
                and hypertension are work-related illnesses but only 
                for employees separating from service before such date; 
                and
            (2) which is received in calendar year 1989, 1990, or 1991.
For purposes of the preceding sentence, the term ``State'' includes the 
District of Columbia.
    (c) Waiver of Statute of Limitations.--If, on the date of the 
enactment of this Act (or at any time within the 1-year period 
beginning on such date of enactment) credit or refund of any 
overpayment of tax resulting from the provisions of this section is 
barred by any law or rule of law, credit or refund of such overpayment 
shall, nevertheless, be allowed or made if claim therefore is filed 
before the date 1 year after such date of enactment.
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