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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2064 Introduced in House (IH)]

  1st Session
                                H. R. 2064

To amend the Internal Revenue Code of 1986 to exclude certain severance 
       payments from gross income for employees who are laid off.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 9, 2003

Mr. Smith of New Jersey (for himself, Mr. Renzi, and Mr. Garrett of New 
   Jersey) 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 exclude certain severance 
       payments from gross income for employees who are laid off.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Displaced Worker Assistance Act of 
2003''.

SEC. 2. EXCLUSION FROM INCOME OF SEVERANCE PAYMENT AMOUNTS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by inserting after section 139 the 
following new section:

``SEC. 139A. SEVERANCE PAYMENTS.

    ``(a) In General.--In the case of an individual, gross income shall 
not include any qualified severance payment.
    ``(b) Limitations.--
            ``(1) Amount.--The amount to which the exclusion under 
        subsection (a) applies shall not exceed--
                    ``(A) $15,000, with respect to any separation from 
                employment, reduced by
                    ``(B) the aggregate amount excluded from gross 
                income under subsection (a) in prior taxable years.
            ``(2) Years to Which Exclusion Applies.--No qualified 
        severance payment shall be excluded from gross income under 
        subsection (a) unless such payment is received in the taxable 
        year in which separation from employment occurs or in one of 
        the two succeeding taxable years.
    ``(c) Qualified severance payment.--For purposes of this section, 
the term `qualified severance payment' means any payment received by an 
individual if--
            ``(1) such payment was paid by such individual's employer 
        on account of such individual's separation from employment, and
            ``(2) such individual received a written notice from such 
        employer indicating that such payment is a severance 
        payment.''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 139 the following new item:

                              ``Sec. 139A. Severance payments.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2002.
                                 <all>
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