[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2802 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2802

   To amend the Internal Revenue Code of 1986 to exempt unemployment 
            benefits from Federal and State income taxation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 29, 1993

Mr. Blackwell introduced the following bill; which was referred jointly 
         to the Committees on Ways and Means and the Judiciary

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to exempt unemployment 
            benefits from Federal and State income taxation.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXEMPTION OF UNEMPLOYMENT BENEFITS FROM FEDERAL INCOME TAX.

    (a) General Rule.--Section 85 of the Internal Revenue Code of 1986 
is hereby repealed.
    (b) Conforming Amendments.--
            (1) Section 6050B of such Code is hereby repealed.
            (2) The table of sections for part II of subchapter B of 
        chapter 1 of such Code is amended by striking the item relating 
        to section 85.
            (3) The table of sections for subpart B of part III of 
        subchapter A of chapter 61 of such Code is amended by striking 
        the item relating to section 6050B.

SEC. 2. EXEMPTION OF UNEMPLOYMENT BENEFITS FROM STATE OR LOCAL INCOME 
              TAX.

    (a) General Rule.--Chapter 4 of title 4, United States Code, is 
amended by adding at the end thereof the following new section:
``Sec. 114. Exemption of unemployment benefits
    ``(a) No State, or political subdivision thereof, may include 
unemployment compensation in income for purposes of any income tax (as 
defined in section 110(c) of this title) levied by such State or 
political subdivision thereof.
    ``(b) For purposes of this section--
            ``(1) the term `unemployment compensation' means any amount 
        received under a law of the United States or of a State which 
        is in the nature of unemployment compensation, and
            ``(2) the term `State' includes the District of Columbia.''
    (b) The analysis for chapter 4 of title 4, United States Code, is 
amended by adding at the end thereof the following:

``114. Exemption of unemployment benefits.''

SEC. 3. EFFECTIVE DATE.

    The amendments made by this section shall apply to amounts received 
after December 31, 1992.

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