Page:United States Statutes at Large Volume 124.djvu/1314

 124 STAT. 1288 PUBLIC LAW 111–192—JUNE 25, 2010 ‘‘(v) OTHER EXCEPTIONS.—The following amounts includible in income shall not be taken into account under clause (i)(I): ‘‘(I) COMMISSIONS.—Any remuneration payable on a commission basis solely on account of income directly generated by the individual performance of the individual to whom such remuneration is payable. ‘‘(II) CERTAIN PAYMENTS UNDER EXISTING CON- TRACTS.—Any remuneration consisting of non- qualified deferred compensation, restricted stock, stock options, or stock appreciation rights payable or granted under a written binding contract that was in effect on March 1, 2010, and which was not modified in any material respect before such remuneration is paid. ‘‘(vi) SELF-EMPLOYED INDIVIDUAL TREATED AS EMPLOYEE.—The term ‘employee’ includes, with respect to a calendar year, a self-employed individual who is treated as an employee under section 401(c) of such Code for the taxable year ending during such calendar year, and the term ‘compensation’ shall include earned income of such individual with respect to such self- employment. ‘‘(vii) INDEXING OF AMOUNT.—In the case of any calendar year beginning after 2010, the dollar amount under clause (i)(II) shall be increased by an amount equal to— ‘‘(I) such dollar amount, multiplied by ‘‘(II) the cost-of-living adjustment determined under section 1(f)(3) of such Code for the calendar year, determined by substituting ‘calendar year 2009’ for ‘calendar year 1992’ in subparagraph (B) thereof. If the amount of any increase under clause (i) is not a multiple of $1,000, such increase shall be rounded to the next lowest multiple of $1,000. ‘‘(E) EXTRAORDINARY DIVIDENDS AND REDEMPTIONS.— ‘‘(i) IN GENERAL.—The amount determined under this subparagraph for any plan year is the excess (if any) of the sum of the dividends declared during the plan year by the plan sponsor plus the aggregate amount paid for the redemption of stock of the plan sponsor redeemed during the plan year over the greater of— ‘‘(I) the adjusted net income (within the meaning of section 4043) of the plan sponsor for the preceding plan year, determined without regard to any reduction by reason of interest, taxes, depreciation, or amortization, or ‘‘(II) in the case of a plan sponsor that deter- mined and declared dividends in the same manner for at least 5 consecutive years immediately pre- ceding such plan year, the aggregate amount of dividends determined and declared for such plan year using such manner. Effective date.