(2) DISQUALIFIED BONUS PAYMENT.— 
(A) IN GENERAL.—The term ‘‘disqualified 
bonus payment’’ means any retention payment, 
incentive payment, or other bonus which is in 
addition to any amount payable to such indi-
vidual for service performed by such individual 
at a regular hourly, daily, weekly, monthly, or 
similar periodic rate. 
(B) EXCEPTIONS.—Such term shall not in-
clude commissions, welfare or fringe benefits, or 
expense reimbursements. 
(C) WAIVER OR RETURN OF PAYMENTS.— 
Such term shall not include any amount if the 
employee irrevocably waives the employee’s enti-
tlement to such payment, or the employee re-
turns such payment to the employer, before the 
close of the taxable year in which such payment 
is due. The preceding sentence shall not apply 
if the employee receives any benefit from the 
employer in connection with the waiver or re-
turn of such payment. 
(3) REIMBURSEMENT
OF
TAX
TREATED
AS 
TARP
BONUS.—Any reimbursement by a covered 
TARP recipient of the tax imposed under subsection
(a) shall be treated as a disqualified bonus payment 
to the taxpayer liable for such tax. 
(c) COVERED TARP RECIPIENT.—For purposes of 
this section— 
(1) IN GENERAL.—The term ‘‘covered TARP 
recipient’’ means— 
(A) any person who receives after Decem-
ber 31, 2007, capital infusions under the Emer-
gency Economic Stabilization Act of 2008 
which, in the aggregate, exceed $5,000,000,000, 
(B) the Federal National Mortgage Asso-
ciation and the Federal Home Loan Mortgage 
Corporation, 
(C) any person who is a member of the 
same affiliated group (as defined in section 
1504 of the Internal Revenue Code of 1986, de-
termined without regard to paragraphs (2) and 
(3) of subsection (b)) as a person described in 
subparagraph (A) or (B), and 
(D) any partnership if more than 50 per-
cent of the capital or profits interests of such 
partnership are owned directly or indirectly by 
one or more persons described in subparagraph 
(A), (B), or (C).
(2) EXCEPTION
FOR
TARP
RECIPIENTS
WHO 
REPAY ASSISTANCE.—A person shall be treated as 
described in paragraph (1)(A) for any period only 
if— 
(A) the excess of the aggregate amount of 
capital infusions described in paragraph (1)(A) 
with respect to such person over the amounts 
repaid by such person to the Federal Govern-
ment with respect to such capital infusions, ex-
ceeds 
(B) $5,000,000,000. 
(d) OTHER DEFINITIONS.—Terms used in this sec-
tion which are also used in the Internal Revenue Code of 
1986 shall have the same meaning when used in this sec-
tion as when used in such Code. 
(e) COORDINATION WITH INTERNAL REVENUE CODE 
OF 1986.—Any increase in the tax imposed under chapter 
1 of the Internal Revenue Code of 1986 by reason of sub-
section (a) shall not be treated as a tax imposed by such 
chapter for purposes of determining the amount of any 
credit under such chapter or for purposes of section 55 
of such Code. 
(f) REGULATIONS.—The Secretary of the Treasury, 
or the Secretary’s delegate, shall prescribe such regula-
tions or other guidance as may be necessary or appro-
priate to carry out the purposes of this section. 
(g) EFFECTIVE DATE.—This section shall apply to 
disqualified bonus payments received after December 31, 
2008, in taxable years ending after such date. 
Passed the House of Representatives March 19, 
2009. 
Attest: 
Clerk.
111TH CONGRESS 
1ST SESSION 
H. R. 1586 
AN ACT 
To impose an additional tax on bonuses received 
from certain TARP recipients.