[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3119 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 3119

To amend the Internal Revenue Code of 1986 to exclude from gross income 
     certain stipends paid as part of a State program under which 
  individuals who have attained age 60 perform essentially volunteer 
                   services specified by the program.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 20, 1999

  Mr. Neal of Massachusetts 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 exclude from gross income 
     certain stipends paid as part of a State program under which 
  individuals who have attained age 60 perform essentially volunteer 
                   services specified by the program.

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

SECTION 1. EXCLUSION FROM GROSS INCOME FOR STIPENDS RECEIVED FOR 
              ESSENTIALLY VOLUNTEER SERVICES PERFORMED UNDER A STATE 
              PROGRAM.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by inserting after section 138 the 
following new section:

``SEC. 138A. CERTAIN STIPENDS RECEIVED UNDER STATE PROGRAMS BY 
              INDIVIDUALS WHO HAVE ATTAINED AGE 60.

    ``(a) In General.--Gross income shall not include amounts received 
by an individual who has attained age 60 from a qualified State program 
for services performed under such program.
    ``(b) Qualified State Program.--For purposes of this section, the 
term `qualified State program' means any program established by State 
law if--
            ``(1) the program consists of assigning individuals who 
        have attained age 60 to perform volunteer services for 
        nonprofit and nonsectarian entities,
            ``(2) the individuals participating in the program must 
        commit to performing volunteer services under the program for 
        at least 48 hours a month,
            ``(3) the individuals receive no compensation other than 
        from such program for such services,
            ``(4) State law limits the maximum compensation that an 
        individual may receive under the program to the earnings 
        limitation under section 203 of the Social Security Act, and
            ``(5) substantially all of the funds for such program are 
        provided by the State.
    ``(c) Denial of Certain Deductions.--Unless the taxpayer elects not 
to have this section apply for any taxable year, no deduction shall be 
allowed under this chapter for any amount which is otherwise allowable 
as a deduction by reason of performing services under a qualified State 
program.''
    (b) Exclusion From Employment Taxes.--
            (1)(A) Paragraph (18) of section 3121(a) of such Code is 
        amended by striking ``or 129'' and inserting ``, 129, or 
        138A''.
            (B) Paragraph (15) of section 209(a) of the Social Security 
        Act is amended by striking ``or 129'' and inserting ``, 129, or 
        138A''.
            (2) Paragraph (13) of section 3306(b) of such Code is 
        amended by striking ``or 129'' and inserting ``, 129, or 
        138A''.
            (3) Paragraph (18) of section 3401(a) of such Code is 
        amended by striking ``or 129'' and inserting ``, 129, or 
        138A''.
    (c) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 138 the following new item:

                              ``Sec. 138A. Certain stipends received 
                                        under State programs by 
                                        individuals who have attained 
                                        age 60.''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1999.
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