Whereas , The deferred operation of this act would tend to defeat its purpose, which is to exempt forthwith from income taxation and certain income eligibility calculations for certain recovered assets of Holocaust survivors, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Paragraph (2) of subsection (a) of section 2 of chapter 62 of the General Laws, as appearing in the 1998 Official Edition, is hereby amended by adding the following subparagraph:-

(K) The following items, to the extent included in federal gross income:

(i) distributions or payments, including interest, if any, made to an individual because of his status as a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime or as an heir of such victim and

(ii) income, attributable to, derived from or in any way related to assets stolen from, hidden from, or otherwise lost to Germany or any other Axis regime immediately prior to, during, and immediately after World War II, including but not limited to, payments of compensation or reparation, and interest on and the proceeds of insurance under policies issued to a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime by European insurance companies immediately prior to and during World War II; provided, however, this deduction from federal gross income shall not apply to assets acquired with such assets or with the proceeds from the sale of such assets; provided, further, this paragraph shall only apply to a taxpayer who was the first recipient of such assets after their recovery and who was a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime or as an heir of such a victim.

SECTION 2. Notwithstanding any general or special law to the contrary, any recovered asset, distribution or restitution payment as defined by subparagraph (K) of paragraph (2) of subsection (a) of section 2 of chapter 62 of the General Laws to the extent included in federal gross income, shall be excluded for the purpose of determining eligibility for any income-guideline or income-eligible program in the commonwealth.

SECTION 3. This act shall apply to tax years commencing on or after January 1, 1998.