[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1376 Enrolled Bill (ENR)]

        H.R.1376

                       One Hundred Sixth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

         Begun and held at the City of Washington on Wednesday,
   the sixth day of January, one thousand nine hundred and ninety-nine


                                 An Act


 
To extend the tax benefits available with respect to services performed 
   in a combat zone to services performed in the Federal Republic of 
 Yugoslavia (Serbia/Montenegro) and certain other areas, 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. AVAILABILITY OF CERTAIN TAX BENEFITS FOR SERVICES AS PART OF 
              OPERATION ALLIED FORCE.

    (a) General Rule.--For purposes of the following provisions of the 
Internal Revenue Code of 1986, a qualified hazardous duty area shall be 
treated in the same manner as if it were a combat zone (as determined 
under section 112 of such Code):
        (1) Section 2(a)(3) (relating to special rule where deceased 
    spouse was in missing status).
        (2) Section 112 (relating to the exclusion of certain combat 
    pay of members of the Armed Forces).
        (3) Section 692 (relating to income taxes of members of Armed 
    Forces on death).
        (4) Section 2201 (relating to members of the Armed Forces dying 
    in combat zone or by reason of combat-zone-incurred wounds, etc.).
        (5) Section 3401(a)(1) (defining wages relating to combat pay 
    for members of the Armed Forces).
        (6) Section 4253(d) (relating to the taxation of phone service 
    originating from a combat zone from members of the Armed Forces).
        (7) Section 6013(f)(1) (relating to joint return where 
    individual is in missing status).
        (8) Section 7508 (relating to time for performing certain acts 
    postponed by reason of service in combat zone).
    (b) Qualified Hazardous Duty Area.--For purposes of this section, 
the term ``qualified hazardous duty area'' means any area of the 
Federal Republic of Yugoslavia (Serbia/Montenegro), Albania, the 
Adriatic Sea, and the northern Ionian Sea (above the 39th parallel) 
during the period (which includes the date of the enactment of this 
Act) that any member of the Armed Forces of the United States is 
entitled to special pay under section 310 of title 37, United States 
Code (relating to special pay: duty subject to hostile fire or imminent 
danger) for services performed in such area.
    (c) Special Rule for Section 7508.--Solely for purposes of applying 
section 7508 of the Internal Revenue Code of 1986, in the case of an 
individual who is performing services as part of Operation Allied Force 
outside the United States while deployed away from such individual's 
permanent duty station, the term ``qualified hazardous duty area'' 
includes, during the period for which the entitlement referred to in 
subsection (b) is in effect, any area in which such services are 
performed.
    (d) Effective Dates.--
        (1) In general.--Except as provided in paragraph (2), this 
    section shall take effect on March 24, 1999.
        (2) Withholding.--Subsection (a)(5) shall apply to remuneration 
    paid after the date of the enactment of this Act.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.