[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2776 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 2776

 To amend the Internal Revenue Code of 1986 to provide that members of 
the Armed Forces performing service in a contingency operation declared 
by the President shall be entitled (if the President so designates that 
   operation for such purpose) to exclude from gross income military 
compensation received for active service in the same manner as if such 
    service was performed in a combat zone, and for other purposes.


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                    IN THE HOUSE OF REPRESENTATIVES

                           December 13, 1995

 Mr. Skelton (for himself, Mr. Montgomery, Mr. Spence, Mr. McHale, Mr. 
   Buyer, and Mrs. Fowler) introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide that members of 
the Armed Forces performing service in a contingency operation declared 
by the President shall be entitled (if the President so designates that 
   operation for such purpose) to exclude from gross income military 
compensation received for active service in the same manner as if such 
    service was performed in a combat zone, and for other purposes.

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

SECTION 1. TAX TREATMENT FOR PARTICIPANTS IN MILITARY CONTINGENCY 
              OPERATIONS.

    (a) Enlisted Personnel.--Subsection (a) of section 112 of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``or'' at the end of paragraph (1);
            (2) by redesignating paragraph (2) as paragraph (3) and 
        inserting after paragraph (1) the following new paragraph (2):
            ``(2) served in a contingency operation zone, or''; and
            (3) in paragraph (3), as so redesignated, by inserting ``or 
        in a contingency operation zone'' after ``in a combat zone''.
    (b) Commissioned Officers.--Subsection (b) of such section is 
amended--
            (1) by striking ``or'' at the end of paragraph (1);
            (2) by redesignating paragraph (2) as paragraph (3) and 
        inserting after paragraph (1) the following new paragraph (2):
            ``(2) served in a contingency operation zone, or''; and
            (3) in paragraph (3), as so redesignated, by inserting ``or 
        in a contingency operation zone'' after ``in a combat zone''.
    (c) Definition.--Subsection (c) of such section is amended by 
adding at the end the following new paragraph:
            ``(5)(A) The term `contingency operation zone' means any 
        area which the President of the United States by Executive 
        Order designates, for purposes of this section, as an area in 
        which Armed Forces of the United States are or have been 
        engaged in a contingency operation.
            ``(B) Service is performed in a contingency operation zone 
        only if performed (i) on or after the date designated by the 
        President by Executive Order as the date of the commencing of 
        contingency operation activities in such zone, and (ii) on or 
        before the date designated by the President by Executive Order 
        as the date of the termination of contingency operation 
        activities in such zone.
            ``(C) The term `contingency operation' means a military 
        operation that--
                    ``(i) is a contingency operation with the meaning 
                of section 101(a)(13) of title 10, United States Code, 
                as in effect on the date of the enactment of this 
                section; and
                    ``(ii) is designated by the President as a 
                contingency operation for the purposes of this 
                section.''.

SEC. 2. AMOUNT OF INCOME EXCLUSION FOR SERVICE IN COMBAT ZONE OR 
              CONTINGENCY OPERATION ZONE.

    Subsection (b) of section 112 of the Internal Revenue Code of 1986, 
as amended by section 1(b), is amended by striking ``$500'' and 
inserting ``$2400''.

SEC. 3. EFFECTIVE DATE.

    The amendments made by this Act shall apply with respect to periods 
beginning on or after November 1, 1995.
                                 <all>