,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #egd  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,febru>y #bg1 #bjai    
,ms4 ,h>ris 7= h]self & ,ms4 ,murk[ski7 
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to modify ! tax   
treatm5t ( am\nts relat$ to employm5t   
discrim9ation & h>assm5t 9 ! workplace1 
includ+ sexual h>assm5t1 sexual assault1
 & h>assm5t bas$ on protect$ categories4
  #a4 ,%ort title ,?is ,act may be cit$ 
z ! ,end+ ! ,monopoly ( ,p[] ,ov]       
,workplace h>assm5t ?r\gh ,education &  
,report+ ,act--,"p #b or ! ,,emp[]      
,act--,"p #b4  #b4 ,tax treatm5t (      
am\nts relat$ to judgm5ts  7a7 ,d5ial ( 
d$uction  7#a7 ,9 g5]al ,"p ,,ix (      
sub*apt] ,b ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new section3  #bhj;,i4
 ,am\nts relat$ to judgm5ts ) respect to
 workplace h>assm5t1 includ+ sexual     
h>assm5t ,no d$uction %all be all[$ "u  

?is *apt] = am\nts paid or incurr$ by ! 
taxpay]-- 7#a7 pursuant to any judgm5t  
or aw>d 9 litigation relat$ to workplace
 h>assm5t1 includ+ sexual h>assm5t1 or  
7#b7 = exp5ses & attorney's fees 9      
connection ) ! litigation result+ 9 !   
judgm5t or aw>d describ$ 9 p>agraph 7#a7
 7o!r ?an exp5ses or attorney's fees    
paid by ! workplace h>assm5t pla9tiff or
 claimant71 or = any insurance cov]+ !  
def5se or liability ( ! und]ly+ claims )
 respect to su* litigation4  4  7#b7    
,cl]ical am5dm5t ,! table ( sections =  
"p ,,ix ( sub*apt] ,b ( *apt] #a ( su*  
,code is am5d$ by add+ at ! end ! foll[+
 new item3  ,sec4 #bhj;,i4 ,am\nts      
relat$ to judgm5ts ) respect to         
workplace h>assm5t1 includ+ sexual      
h>assm5t4  4  7#c7 ,con=m+ am5dm5t      
,section #afb ( su* ,code is am5d$ by   
/rik+ subsection 7q74  7#d7 ,effective  
date ,! am5dm5ts made by ?is subsection 
%all apply to am\nts paid or incurr$ 9  
taxable ye>s beg9n+ aft] ! date ( !     
enactm5t ( ?is ,act4  7b7 ,exclusion f  

income  7#a7 ,9 g5]al ,"p ,,iii (       
sub*apt] ,b ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] section #aci;,g ! foll[+ new      
section3  #aci;,h4 ,am\nts receiv$ 9    
connection ) judgm5ts1 aw>ds1 &         
settlem5ts ) respect to workplace       
h>assm5t ,gross income %all n include   
any am\nt receiv$ 9 connection ) a      
judgm5t or aw>d 91 or a settlem5t (--   
7#a7 a claim relat$ to workplace        
h>assm5t1 includ+ sexual h>assm5t or o!r
 unlawful discrim9ation1 or  7#b7 any   
o!r claim ( unlawful discrim9ation 7z   
def9$ by section #fb7;e774  ,! prec$+   
s5t5ce %all n include any employm5t     
discrim9ation comp5sation to :i* section
 #acjb applies4  4  7#b7 ,cl]ical       
am5dm5t ,! table ( sections = "p ,,iii (
 sub*apt] ,b ( *apt] #a ( su* ,code is  
am5d$ by ins]t+ aft] ! item relat+ to   
section #aci;,g ! foll[+ new item3      
,sec4 #aci;,h4 ,am\nts receiv$ 9        
connection ) judgm5ts1 aw>ds1 or        
settlem5ts ) respect to workplace       

h>assm5t4  4  7#c7 ,effective date ,!   
am5dm5ts made by ?is subsection %all    
apply to am\nts receiv$ 9 taxable ye>s  
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  #c4 ,limitation on tax bas$ on   
income av]ag+ = comp5sation receiv$ on  
acc\nt ( c]ta9 unlawful employm5t       
discrim9ation  7a7 ,9 g5]al ,"p ,i (    
sub*apt] ,q ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf 7relat+ to income 
av]ag+7 is am5d$ by add+ at ! end !     
foll[+ new section3  #acjb4 ,income f   
comp5sation receiv$ on acc\nt ( c]ta9   
unlawful employm5t discrim9ation  7a7   
,g5]al rule ,9 ! case ( any employm5t   
discrim9ation comp5sation receiv$ dur+  
any taxable ye>1 ! tax impos$ by ?is    
*apt] = su* taxable ye> ) respect to su*
 comp5sation %all n exce$ ! sum (--     
7#a7 ! tax :i* w\ld be s impos$ if--    
7,a7 no am\nt ( su* comp5sation 7       
includ$ 9 gross income = su* ye>1 &     
7,b7 no d$uction 7 all[$ = su* ye> =    
exp5ses o!rwise all[able z a d$uction to
 ! taxpay] = su* ye> 9 connection ) mak+

 or prosecut+ any claim ( unlawful      
employm5t discrim9ation by or on behalf 
( ! taxpay]1 plus  7#b7 ! product (--   
7,a7 ! comb9$ numb] ( ye>s 9 ! backpay  
p]iod & ! =egone comp5sation p]iod1 &   
7,b7 ! am\nt by :i* ! tax det]m9$ "u    
p>agraph 7#a7 w\ld increase if ! sum (--
  7i7 ! av]age ( ! av]age annual net    
employm5t discrim9ation comp5sation 9 ! 
backpay p]iod1 &  7ii7 ! av]age ( !     
av]age annual net employm5t             
discrim9ation comp5sation 9 ! =egone    
comp5sation p]iod1  7 includ$ 9 gross   
income = su* ye>4  7b7 ,def9itions ,=   
purposes ( ?is section-- 7#a7 ,employm5t
 discrim9ation comp5sation ,! t]m       
employm5t discrim9ation comp5sation     
means any backpay or =egone comp5sation 
receivable 7:e!r z lump sums or p]iodic 
paym5ts7 on acc\nt ( a judgm5t or       
settlem5t result+ f a claim ( unlawful  
discrim9ation 7z def9$ 9 section        
#fb7;e77 9 violation ( law :i* relates  
to employm5t4  7#b7 ,backpay ,! t]m     
backpay means am\nts :i* are includible 

9 gross income = ! taxable ye> z        
comp5sation :i* is attributable to      
s]vices p]=m$ 7or :i* w\ld h be5 p]=m$ b
 = ! violation ( law describ$ 9 p>agraph
 7#a77 z an employee1 =m] employee1 or  
prospective employee 9 ye>s be=e su*    
taxable ye> = ! taxpay]'s employ]1 =m]  
employ]1 or prospective employ]4  7#c7  
,=egone comp5sation ,! t]m =egone       
comp5sation means am\nts :i* are        
includible 9 gross income = ! taxable   
ye> z comp5sation :i* is attributable to
 s]vices :i* w\ld h be5 p]=m$ 9 ye>s    
aft] su* taxable ye> b = ! violation (  
law describ$ 9 p>agraph 7#a74  7#d7     
,backpay p]iod ,! t]m backpay p]iod     
means ! p]iod dur+ :i* s]vices describ$ 
9 p>agraph 7#b7 7 p]=m$ or w\ld h be5   
p]=m$ b = ! violation ( law describ$ 9  
p>agraph 7#a74 ,if su* p]iod is n equal 
to a :ole numb] ( taxable ye>s1 su*     
p]iod %all be increas$ to ! next highe/ 
numb] ( :ole taxable ye>s4  7#e7 ,=egone
 comp5sation p]iod ,! t]m =egone        
comp5sation p]iod means ! p]iod dur+ :i*

 s]vices describ$ 9 p>agraph 7#c7 w\ld h
 be5 p]=m$ b = ! violation ( law        
describ$ 9 p>agraph 7#a74 ,if su* p]iod 
is n equal to a :ole numb] ( taxable    
ye>s1 su* p]iod %all be increas$ to !   
next highe/ numb] ( :ole taxable ye>s4  
7#f7 ,av]age annual net employm5t       
discrim9ation comp5sation ,! t]m av]age 
annual net employm5t discrim9ation      
comp5sation ) respect to any p]iod means
 ! am\nt equal to-- 7,a7 ! excess (--   
7i7 employm5t discrim9ation comp5sation 
attributable to su* p]iod1 ov]  7ii7 !  
am\nt ( ! d$uctions describ$ 9          
subsection 7a77#a77;,b71 divid$ by  7,b7
 ! total numb] ( ye>s 9 ! backpay p]iod 
& ! =egone comp5sation p]iod4  4  7b7   
,cl]ical am5dm5t ,! table ( sections =  
"p ,i ( sub*apt] ,q ( *apt] #a ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #acja ! foll[+   
new item3  ,sec4 #acjb4 ,income f       
comp5sation receiv$ on acc\nt ( c]ta9   
unlawful employm5t discrim9ation4  4    
7c7 ,income av]ag+ n ,to increase       

alt]native m9imum tax liability ,section
 #ee7;c7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by r$esignat+ p>agraph   
7#c7 z p>agraph 7#d7 & by ins]t+ aft]   
p>agraph 7#b7 ! foll[+ new p>agraph3    
7#c7 ,coord9ation ) income av]ag+ =     
am\nts receiv$ on acc\nt ( employm5t    
discrim9ation ,solely = purposes ( ?is  
section1 section #acjb %all n apply 9   
comput+ ! regul> tax liability4  4  7d7 
,effective date ,! am5dm5ts made by ?is 
section %all apply to am\nts paid or    
incurr$ 9 taxable ye>s beg9n+ aft] !    
date ( ! enactm5t ( ?is ,act4