12 2 STA T .3806PUBLIC LA W 110 – 3 4 3 —O CT. 3 , 2008 shal l betr eate d asare f ere nc et o an yp ay m ent made d u r i n g an applicable ta x able year of the employer on account of such applicable se v erance from employment .‘ ‘ (C)A ny reference to a corporation shall be treated as a reference to an applicable employer. ‘‘( D ) T he provisions of subsections (b)( 2 )(C) , (b)( 4 ), (b)( 5 ), and (d)(5) shall not apply. ‘‘(2) D EFIN I T I O N SA N D S P E C IA LRU LES. —F or purposes of this subsection
‘‘(A) DEFINITIONS.—Any term used in this subsection w hich is also used in section 16 2(m)(5) shall have the meaning given such term by such section. ‘‘( B ) APPLICA B LE SE V ERANCE FRO M EMPLO Y MENT.—The term ‘applicable severance from employment ’ means any severance from employment of a covered executive— ‘‘(i) by reason of an involuntary termination of the executive by the employer, or ‘‘(ii) in connection with any ban k ruptcy, li q uida - tion, or receivership of the employer. ‘‘(C) COORDINATION AND OT H ER RULES.— ‘‘(i) I N G ENERAL.—If a payment which is treated as a parachute payment by reason of this subsection is also a parachute payment determined without regard to this subsection, this subsection shall not apply to such payment. ‘‘(ii) R EGULATORY AUTHORITY.—The S ecretary may prescribe such guidance, rules, or regulations as are necessary— ‘‘(I) to carry out the purposes of this subsection and the E mergency Economic Stabili z ation Act of 2 0 0 8 , including the extent to which this subsection applies in the case of any acquisition, merger, or reorganization of an applicable employer, ‘‘(II) to apply this section and section 4 9 99 in cases where one or more payments with respect to any individual are treated as parachute pay- ments by reason of this subsection, and other pay- ments with respect to such individual are treated as parachute payments under this section without regard to this subsection, and ‘‘(III) to prevent the avoidance of the applica- tion of this section through the mischaracterization of a severance from employment as other than an applicable severance from employment.’’. (c) EFFECTIVE DATES.— (1) IN GENERAL.—The amendment made by subsection (a) shall apply to taxable years ending on or after the date of the enactment of this Act. (2) G OLDEN PARACHUTE RULE.—The amendments made by subsection (b) shall apply to payments with respect to severances occurring during the period during which the authorities under section 101(a) of this Act are in effect (deter- mined under section 120 of this Act). 26USC 2 80Gnote. 26 USC 1 62 note.
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