[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1376 Received in Senate (RDS)]

  1st Session
                                H. R. 1376


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 15, 1999

                                Received

_______________________________________________________________________

                                 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.

            Passed the House of Representatives April 15, 1999.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.