[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 297 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 297

  To amend the Internal Revenue Code of 1986 to clarify the exclusion 
               from gross income for veterans' benefits.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 30, 1995

 Mr. Rockefeller (for himself, Mr. Daschle, Mr. Graham, Mr. Akaka, Mr. 
  Campbell, Mr. Jeffords, Mr. Leahy, and Mr. Bingman) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to clarify the exclusion 
               from gross income for veterans' benefits.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans' Tax Fairness Act of 
1995''.

SEC. 2. CLARIFICATION OF TREATMENT OF VETERANS' BENEFITS.

    (a) In General.--Subsection (a) of section 134 of the Internal 
Revenue Code of 1986 (relating to certain military benefits) is amended 
to read as follows:
    ``(a) General Rule.--Gross income shall not include--
            ``(1) any qualified military benefit, and
            ``(2) any allowance or benefit administered by the 
        Secretary of Veterans Affairs which is received by a veteran 
        (as defined in section 101 of title 38, United States Code) or 
        a dependent or survivor of a veteran.''
    (b) Technical Amendment.--Paragraph (3) of section 137(a) of such 
Code is amended to read as follows:
            ``(3) Benefits under laws administered by the Secretary of 
        Veterans Affairs, see section 5301 of title 38, United States 
        Code.''
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1984.
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