A bill to continue the present income tax treatment of nonqualified deferred compensation plans established by State and local governments and other employers.

Permits a taxpayer to continue to treat, at his option, a payment of compensation under a nonqualified compensation reduction plan as payable to him in a later tax year, despite a proposed Treasury Department rule which would require such payment to be treated as payable to the taxpayer in the year it would have been payable but for the taxpayer's exercise of his option.