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TITLE 26-INTERNAL REVENUE CODE EFFECTIVE DATE OF 1969 AMENDMENT Section 601(b) of Pub. L. 91-172 provided that: "The amendments made by subsection (a) [to this section] shall apply with respect to obligations issued after Oc- tober 9, 1969." EFFECTIVE DATE OF 1968 AMENDMENT Section 401(b) of Pub. L. 90-634 provided that: "The amendment made by subsection (a) [to this section] shall apply with respect to obligations issued after the date of the enactment of this Act [Oct. 24, 1968]." Section 107(b)(1) of Pub. L. 90-364 provided that: "Except as provided by paragraph (2) [set out as a note below], the amendment made by subsection (a) [adding subsec. (c), now subsec. (b), of this section] shall apply to taxable years ending after April 30, 1968, but only with respect to obligations issued after such date." TRANSITIONAL PROVISIONS FOR INDUSTRIAL DEVELOPMENT BONDS IssuED BEFORE JANUARY 1, 1969 Section 107(b)(2) of Pub. L. 90-364 provided that: "Section 103(c)(1) of the Internal Revenue Code of 1954, as amended by subsection (a) [subsec. (b)(1), for- merly subsec. (c)(1) of this section], shall not apply with respect to any obligation issued before January 1, 1969, if before May 1, 1968- "(A) the issuance of the obligation (or the project in connection with which the proceeds of the obliga- tions are to be used) was authorized or approved by the governing body of the governmental unit issuing the obligation or by the voters of such governmental unit; "(B) in connection with the issuance of such obli- gation or with the use of the proceeds to be derived from the sale of such obligation or the property to be acquired or improved with such proceeds, a gov- ernmental unit has made a significant financial com- mitment; "(C) any person (other than a governmental unit) who will use the proceeds to be derived from the sale of such obligation or the property to be acquired or improved with such proceeds has expended (or has entered into a binding contract to expend) for pur- poses which are related to the use of such proceeds or property, an amount equal to or in excess of 20 percent of such proceeds; or "(D) in the case of an obligation issued in conjunc- tion with a project where financial assistance will be provided by a governmental agency concerned with economic development, such agency has approved the project or an application for financial assistance is pending." CROSS REFERENCES Bonds and other evidences of indebtedness having taxfree interest as not subject to special rules for de- termining capital gains and losses, see section 1232 of this title. Estates, trusts and beneficiaries, tax-exempt interest in determining distributable net income, see section 643 of this title. Insurance company taxable income as gross income less, among others, deduction for tax-free interest, see section 832 of this title. Life insurance companies, taxable income as gross income minus, among others, deduction for partially tax-exempt interest, see section 804 of this title. Mutual insurance companies, taxable income as gross investment income minus, among others, deduc- tion for tax-free interest, see section 822 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 593, 643, 667, 804, 809, 818, 819, 822, 832, 1232, 4940, 4942, 6049, 6362, 7701 of this title; title 15 sections 77c, 78c; title 46 sec- tion 1177. § 104. Compensation for Injuries or sickness (a) In general Except in the case of amounts attributable to (and not in excess of) deductions allowed under section 213 (relating to medical, etc., expenses) for any prior taxable year, gross income does not include- (1) amounts received under workmen's com- pensation acts as compensation for personal injuries or sickness; (2) the amount of any damages received (whether by suit or agreement) on account of personal injuries or sickness; (3) amounts received through accident or health insurance for personal injuries or sick- ness (other than amounts received by an em- ployee, to the extent such amounts (A) are at- tributable to contributions by the employer which were not includible in the gross income of the employee, or (B) are paid by the em- ployer); (4) amounts received as a pension, annuity, or similar allowance for personal injuries or sickness resulting from active service in the armed forces of any country or in the Coast and Geodetic Survey or the Public Health Service, or as a disability annuity payable under the provisions of section 831 of the Foreign Service Act of 1946, as amended (22 U.S.C. 1081); and (5) amounts received by an individual as dis- ability income attributable to injuries in- curred as a direct result of a violent attack which the Secretary of State determines to be a terrorist attack and which occurred while such individual was an employee of the United States engaged in the performance of his official duties outside the United States. For purposes of paragraph (3), in the case of an individual who is, or has been, an employee within the meaning of section 401(c)(1) (relat- ing to self-employed individuals), contributions made on behalf of such individual while he was such an employee to a trust described in section 401(a) which is exempt from tax under section 501(a), or under a plan described in section 403(a), shall, to the extent allowed as deduc- tions under section 404, be treated as contribu- tions by the employer which were not includi- ble in the gross income of the employee. (b) Termination of application of subsection (a)(4) in certain cases (1) In general Subsection (a)(4) shall not apply in the case of any individual who is not described in para- graph (2). (2) Individuals to whom subsection (a)(4) continues to apply An individual is described in this para- graph if- (A) on or before September 24, 1975, he was entitled to receive any amount de- scribed in subsection (a)(4), (B) on September 24, 1975, he was a member of any organization (or reserve component thereof) referred to in subsec- tion (a)(4) or under a binding written com- mitment to become such a member, § 104 Page 116