H.R. 1543

To amend the Internal Revenue Code of 1986 to impose a tax on bonuses received from companies receiving TARP funds.

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I

111th CONGRESS

1st Session

H. R. 1543

IN THE HOUSE OF REPRESENTATIVES

March 17, 2009

Mr. Dingell 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 impose a tax on bonuses received from companies receiving TARP funds.

1.

Tax on bonuses received from companies receiving TARP funds

(a)

In general

Subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new part:

VIII

Bonuses 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 general

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)

TARP recipient

For purposes of this section—

(1)

In general

The term TARP recipient means any person who receives funds under title I of the Emergency Economic Stabilization Act of 2008.

(2)

Period of treatment

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)

Special rules

(1)

Reimbursement of tax treated as a bonus

Any 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 income

Any bonus with respect to which tax is imposed under subsection (a) shall not be includible in the gross income of the taxpayer.

(d)

Regulations

The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section.

.

(b)

Clerical amendment

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)

Effective date

The amendments made by this section shall apply to bonuses paid before, on, or after the date of the enactment of this Act.