EXCLUSION FROM GROSS INCOME OF CERTAIN FEDERAL SUBSIDIES FOR PRESCRIPTION DRUG PLANS.

SEC. 1202. EXCLUSION FROM GROSS INCOME OF CERTAIN FEDERAL SUBSIDIES FOR PRESCRIPTION DRUG PLANS.(a) In General.—Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139 the following new section:“SEC. 139A. FEDERAL SUBSIDIES FOR PRESCRIPTION DRUG PLANS. “Gross income shall not include any special subsidy payment received under section 1860D–22 of the Social Security Act. This section shall not be taken into account for purposes of determining whether any deduction is allowable with respect to any cost taken into account in determining such payment.” .(b) Alternative Minimum Tax Relief.—Section 56(g)(4)(B) of such Code is amended by inserting “or 139A” after “section 114”.(c) Conforming 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. Federal subsidies for prescription drug plans.”. (d) Effective Date.—The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.