PUBLIC LAW 94-455—OCT. 4, 1976 be deemed to occur which the tax p a y e r earlier taxable year election not to seek and all subsequent
90 STAT. 1567
before the beginning of the taxable year in attains age 65, or before the beginning of a n for which the tax p a y e r makes an irrevocable the benefits of this' subsection for such year years."
(b) CERTAIN M I L I T A R T, E T C., DISABILITY P E N S I O N S. — S e c t i o n 104
26 USC 104.
(relating to compensation for injuries or sickness) is amended by redesignating subsection (b) as subsection (c) and by inserting after subsection (a) the following new subsection: " (b) TERMINATION o r APPLICATION OF SUBSECTION (a)(4) I N CERTAIN C A S E S. —
" (1) IN GENERAL.—Subsection (a)(4) shall not apply in the case of any individual who is not described i n paragraph (2). "(2)
INDIVIDUALS TO WHOM SUBSECTION (a)(4) CONTINUES TO
APPLY,—An individual is described in this paragraph if— " (A) on or before September 24, 1975, he was entitled to receive any amount described in subsection (a)(4), " (B) on September 24, 1975, he was a member of any organization (or reserve component thereof) referred to in subsection (a)(4) or under a binding written commitment to become such a member, " (C) he receives a n amount described in subsection (a) (4) by reason of a combat-related injury, or " (I)) on application therefor, he would be entitled to receive disability compensation from the Veterans' Administration. "(3)
SPECIAL RULES FOR COMBAT-RELATED I N J U R I E S. — For p u r -
•.<. " '
"Combat-related
poses of this subsection, the term 'combat-related injury' means '^^JTpersonal injury or sickness— " (A) which is incurred— " (^i) as a direct result of armed conflict, " ( i i) while engaged i n extrahazardous service, or " (iii) under conditions sinnilating w a r; or " (B) which is caused by an instrumentality of war. I n the case of a n individual who is not described i n subparagraph (A) o r (B) of paragraph (2), except as provided in paragraph (4), the only amounts taken into account under subsection (a)(4) shall be the amounts which he receives by reason of a combatrelated injury. "(4)
A M O U N T EXCLUDED TO BE NOT LESS THAN VETERANS' DIS-
ABILITY COMPENSATION.—In the case of any individual described in paragraph (2), the amounts excludable under subsection (a) (4) for any period with respect to any individual shall not be less than the maximum amount which such individual, on application therefor, would be entitled to receive as disability compensation from the Veterans' Administration." (c) SPECIAL RULE FOR E X I S T I N G P E R M A N E N T AND TOTAL DISABILITY
^ ^ ^ ^ ^ ^^^
CASES.—In the case of any individual who— °°*®" (1) retired before January 1, 1976, (2) either retired on disability or was entitled to retire on disability, and (3) on January 1, 1976, was permanently and totally disabled (within the meaning of section 105(d)(5) of the I n t e r n a l Revenue Code of 1954), ^'»^«' P- l^^^-
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