115 STAT. 2428 PUBLIC LAW 107-134-^AN. 23, 2002 TITLE I—VICTIMS OF TERRORISM TAX RELIEF Subtitle A—Relief Provisions for Victims of Terrorist Attacks SEC. 101. INCOME TAXES OF VICTIMS OF TERRORIST ATTACKS. 26 USC 692. (a) IN GENERAL.—Section 692 (relating to income taxes of members of Armed Forces on death) is amended by adding at the end the following new subsection: " (d) INDIVIDUALS DYING AS A RESULT OF CERTAIN ATTACKS.— "(1) IN GENERAL.— In the case of a specified terrorist victim, any tax imposed by this chapter shall not apply— "(A) with respect to the taxable year in which falls the date of death, and "(B) with respect to any prior taxable year in the period beginning with the last taxable year ending before the taxable year in which the wounds, injury, or illness referred to in paragraph (3) were incurred. "(2) $10,000 MINIMUM BENEFIT.—I f, but for this paragraph, the amount of tax not imposed by paragraph (1) with respect to a specified terrorist victim is less than $10,000, then such victim shall be treated as having made a payment against the tax imposed by this chapter for such victim's last taxable year in an amount equal to the excess of $10,000 over the amount of tax not so imposed. "(3) TAXATION OF CERTAIN BENEFITS.—Subject to such rules as the Secretary may prescribe, paragraph (1) shall not apply to the amount of any tax imposed by this chapter which would be computed by only taking into account the items of income, gain, or other amounts attributable to— "(A) deferred compensation which would have been payable after death if the individual had died other than as a specified terrorist victim, or "(B) amounts payable in the taxable year which would not have been payable in such taxable year but for an action taken after September 11, 2001. "(4) SPECIFIED TERRORIST VICTIM.— For purposes of this subsection, the term 'specified terrorist victim means any decedent— "(A) who dies as a result of wounds or injury incurred as a result of the terrorist attacks against the United States on April 19, 1995, or September 11, 2001, or "(B) who dies as a result of illness incurred as a result of an attack involving anthrax occurring on or after September 11, 2001, and before January 1, 2002. Such term shall not include any individual identified by the Attorney General to have been a participant or conspirator in any such attack or a representative of such an individual.". (b) CONFORMING AMENDMENTS.— (1) Section 5(b)(1) is amended by inserting "and victims of certain terrorist attacks" before "on death". (2) Section 6013(f)(2)(B) is amended by inserting "and victims of certain terrorist attacks" before "on death". (c) CLERICAL AMENDMENTS.—
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