Page:United States Statutes at Large Volume 122.djvu/3902

 12 2 STA T .3879PUBLIC LA W 11 0– 3 4 3 —O CT. 3 , 2008 (A)thequalif ie ds ettle m e n tin co me shall b e includible in ta x able income , and ( B )fo rp urposes of section 72 of such C ode, such con - tribution shall be considered to be in v estment in the con- tract . ( 5 ) ELIG I B L ER E T IRE M E N T P L A N. —F or purpose of this sub- section, the term ‘ ‘eli g ible retirement plan ’ ’ has the meaning given such term under section 40 2(c)( 8 )(B) of the I nternal R ev- enue Code of 19 8 6 . (c) T REATMENT OFQU ALIFIE DS ETTLEMENT IN C OME U NDER EMPLO Y MENT TA X E S .— (1) SECA.—For purposes of chapter 2 of the Internal Rev- enue Code of 1986 and section 211 of the Social Securit y Act, no portion of qualified settlement income received by a qualified taxpayer shall be treated as self-employment income. (2) FICA.—For purposes of chapter 21 of the Internal Rev- enue Code of 1986 and section 209 of the Social Security Act, no portion of qualified settlement income received by a qualified taxpayer shall be treated as w ages. (d) QUALIFIED TAXPAYER.—For purposes of this section, the term ‘‘qualified taxpayer’’ means— (1) any individual who is a plaintiff in the civil action In re Exxon V alde z , N o. 89 – 095–CV ( H RH) (Consolidated) ( D . Alas k a) or (2) any individual who is a beneficiary of the estate of such a plaintiff who— (A) acquired the right to receive qualified settlement income from that plaintiff; and (B) was the spouse or an immediate relative of that plaintiff. (e) QUALIFIED SETTLEMENT INCOME.—For purposes of this sec- tion, the term ‘‘qualified settlement income’’ means any interest and punitive damage awards which are— (1) otherwise includible in taxable income, and (2) received (whether as lump sums or periodic payments) in connection with the civil action In re Exxon Valdez, No. 89–095–CV (HRH) (Consolidated) (D. Alaska) (whether pre- or post- j udgment and whether related to a settlement or judg- ment). SEC.50 5. CE RTAINF AR M IN GBU SINESS MAC H INER Y AN D E Q UI P MENT TREATED AS 5 - YEAR PR O PERTY. (a) IN G ENERAL.—Section 168(e)( 3 )(B) (defining 5-year property) is amended by striking ‘‘and’’ at the end of clause (v), by striking the period at the end of clause (vi)(III) and inserting ‘‘, and’’, and by inserting after clause (vi) the following new clause

‘‘(vii) any machinery or equipment (other than any grain bin, cotton ginning asset, fence, or other land improvement) which is used in a farming business (as defined in section 263A(e)(4)), the original use of which commences with the taxpayer after December 31, 2008, and which is placed in service before J anuary 1, 2010.’’. (b) ALTERNATI V E SYSTEM.—The table contained in section 168(g)(3)(B) (relating to special rule for certain property assigned to classes) is amended by inserting after the item relating to subparagraph (B)(iii) the following: 26USC1 6 8.

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