Page:United States Statutes at Large Volume 122.djvu/3826

 12 2 STA T .380 3 PUBLIC LA W 110 – 3 4 3 —O CT. 3 , 2008 thebasi s ofw hi c hi n the han d softhea p p l icable financial instit u tion at the ti m eofthesaleo r e x chan g e is the same as the basis in the hands of the person which held such stoc k on such date , or (2) the applicable financial institution is a partner in a partnership which — ( A ) held such stock on S eptember 6 ,2 0 0 8, and later sold or exchanged such stock, or ( B ) sold or exchanged such stock during the period described in subsection (b)(2)(B) . (e) REGULATORY AUT H OR I TY.— T he Secretar y of the Treasury or the Secretary ’ s delegate may prescribe such guidance, rules, or regulations as are necessary to carry out the purposes of this section. (f) EF FE C TI V E D ATE.—This section shall apply to sales or exchanges occurring after December 31, 200 7 , in taxable years ending after such date. SEC.302 .S P EC IALRU LES FO R T A X TREAT M E N T OF EXECUTI V E COM - PENSATION OF EMPLO Y ERS PARTICIPATIN G INT H E TROU- B LE D ASSETS RELIEF PROGRAM. (a) DE N IAL OF DE D UCTION.—Subsection (m) of section 162 of the I nternal Re v enue C odeof1 9 86 is amended by adding at the end the following new paragraph

‘( 5 )S P ECIAL RULE FOR APPLICATION TO E M PLOYER S PARTICI - PATING IN THE TROU B LED ASSETS RELIEF PROGRAM.— ‘‘(A) IN GENERAL.—In the case of an applicable employer, no deduction shall be allowed under this chapter— ‘‘(i) in the case of executive remuneration for any applicable taxable year which is attributable to services performed by a covered executive during such applicable taxable year, to the extent that the amount of such remuneration exceeds $ 500,000, or ‘‘(ii) in the case of deferred deduction executive remuneration for any taxable year for services per- formed during any applicable taxable year by a covered executive, to the extent that the amount of such remu- neration exceeds $500,000 reduced (but not below z ero) by the sum of— ‘‘(I) the executive remuneration for such applicable taxable year, plus ‘‘(II) the portion of the deferred deduction executive remuneration for such services which was taken into account under this clause in a preceding taxable year. ‘‘(B) APPLICABLE EMPLOYER.— F or purposes of this para- graph— ‘‘(i) IN GENERAL.—Except as provided in clause (ii), the term ‘applicable employer’ means any employer from whom 1 or more troubled assets are ac q uired under a program established by the Secretary under section 101(a) of the Emergency Economic Stabilization Act of 2008 if the aggregate amount of the assets so acquired for all taxable years exceeds $300,000,000. ‘‘(ii) DISREGARD OF CERTAIN ASSETS SOLD THROUGH DIRECT PURCHASE.—If the only sales of troubled assets Defin i t i o n .26USC1 62.

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