Page:United States Statutes at Large Volume 111 Part 1.djvu/1099

 PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 1075 "(C) the officer was performing such officer's duties in a grossly neghgent manner at the time of death; or "(D) the payment is to an individual whose actions were a substantial contributing factor to the death of the officer.", (b) EFFECTIVE DATE. —The amendments made by this section 26 USC loi note. shall apply to amounts received in taxable years beginning after December 31, 1996, with respect to individuals dying after such date. SEC. 1529. 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 amended on May 19, 1992) which irrebuttably presumed that heart disease and hypertension are work-related illnesses but only for employees separating from service before July 1, 1992; and (2) which was received in calendar year 1989, 1990, or 1991. (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 (including res judicata), then 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. SEC. 1530. GRATUITOUS TRANSFERS FOR THE BENEFIT OF EMPLOY- EES. (a) IN GENERAL. —Subparagraph (C) of section 664(d)(1) and subparagraph (C) of section 664(d)(2) are each amended by striking the period at the end thereof and inserting "or, to the extent the remainder interest is in qualified employer securities (as defined in subsection (g)(4)), all or part of such securities are to be transferred to an employee stock ownership plan (as defined in section 4975(e)(7)) in a qualified gratuitous transfer (as defined by subsection (g)).". (b) QUALIFIED GRATUITOUS TRANSFER DEFINED. —Section 664 is amended by adding at the end the following new subsection: " (g) QUALIFIED GRATUITOUS TRANSFER OF QUALIFIED EMPLOYER SECURITIES. —

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