1.Tax on bonuses received from
companies receiving TARP funds
(a)Subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end
the following new part:
VIIIBonuses
received from companies receiving TARP funds
Sec. 59C. Bonuses received from companies receiving TARP
funds.
59C.Bonuses
received from companies receiving TARP funds
(a)In the case of an
employee or former employee of a TARP recipient, there is hereby imposed (in
addition to any other tax imposed by this subtitle) a tax on any bonus received
by the taxpayer during the taxable year from such TARP recipient equal to 95
percent of amount of such bonus.
(b)For purposes of this section—
(1)The term TARP
recipient
means any person who receives funds under title I of the
Emergency Economic Stabilization Act of 2008.
(2)A person shall be treated as a TARP recipient during
the period beginning on the date that such person first receives the funds
referred to in paragraph (1) and ending on the date that all such funds have
been repaid to the Federal Government.
(c)
(1)Reimbursement of
tax treated as a bonusAny reimbursement by a TARP recipient of
the tax imposed under this section shall be treated in the same manner as the
payment of a bonus to the taxpayer liable for such tax.
(2)Exclusion from
gross incomeAny bonus with respect to which tax is imposed under
subsection (a) shall not be includible in the gross income of the
taxpayer.
(d)The
Secretary shall prescribe such regulations or other guidance as may be
necessary or appropriate to carry out the purposes of this
section.
.
(b)The table of parts for subchapter A of chapter 1 of
such Code is amended by adding at the end the following new item:
Part VIII—Bonuses received from companies receiving TARP
funds
.
(c)The amendments made by this section shall apply to bonuses
paid before, on, or after the date of the enactment of this Act.