§1407. Tax exemption; resources exemption limitation

None of the funds which-

(1) are distributed per capita or held in trust pursuant to a plan approved under the provisions of this chapter, or

(2) on January 12, 1983, are to be distributed per capita or are held in trust pursuant to a plan approved by the Congress prior to January 12, 1983, or

(3) were distributed pursuant to a plan approved by Congress after December 31, 1981 but prior to January 12, 1983, and any purchases made with such funds,

including all interest and investment income accrued thereon while such funds are so held in trust, shall be subject to Federal or State income taxes, nor shall such funds nor their availability be considered as income or resources nor otherwise utilized as the basis for denying or reducing the financial assistance or other benefits to which such household or member would otherwise be entitled under the Social Security Act [42 U.S.C. 301 et seq.] or, except for per capita shares in excess of $2,000, any Federal or federally assisted program.

( Pub. L. 93–134, §7, Oct. 19, 1973, 87 Stat. 468 ; Pub. L. 97–458, §4, Jan. 12, 1983, 96 Stat. 2513 .)

References in Text

The Social Security Act, referred to in text, is act Aug. 14, 1935, ch. 531, 49 Stat. 620 , as amended, which is classified generally to chapter 7 (§301 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

Amendments

1983-Pub. L. 97–458 substituted tax exemption and resources exemption limitation for prior tax exemption provision which read as follows: "None of the funds distributed per capita or held in trust under the provisions of this chapter shall be subject to Federal or State income taxes, and the per capita payments shall not be considered as income or resources when determining the extent of eligibility for assistance under the Social Security Act".

Section Referred to in Other Sections

This section is referred to in sections 117b, 1300i–5, 1774f of this title.