[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4174 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4174

To amend the Internal Revenue Code of 1986 to exclude from gross income 
  certain retention and reenlistment bonuses for members of the Armed 
                                Forces.


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                    IN THE HOUSE OF REPRESENTATIVES

                             April 4, 2000

Mr. Kuykendall (for himself, Mr. Bilbray, Mr. Weller, Mr. Houghton, and 
  Mr. Sam Johnson of Texas) 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 retention and reenlistment bonuses for members of the Armed 
                                Forces.

    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 RETENTION AND REENLISTMENT 
              BONUSES FOR MEMBERS OF THE ARMED FORCES.

    (a) In General.--Section 112 of the Internal Revenue Code of 1986 
(relating to certain combat zone compensation of members of the Armed 
Forces) is amended by redesignating subsections (c) and (d) as 
subsections (d) and (e), respectively, and by inserting after 
subsection (b) the following new subsection:
    ``(c) Qualified Retention and Reenlistment Bonus.--Gross income 
does not include a qualified retention and reenlistment bonus.''.
    (b) Qualified Retention and Reenlistment Bonus Defined.--Subsection 
(d) of section 112 of such Code (relating to definitions), as 
redesignated by subsection (a), is amended by adding at the end the 
following new paragraph:
            ``(6) Qualified retention and reenlistment bonus.--The term 
        `qualified retention and reenlistment bonus' means special or 
        incentive pay under one of the following provisions of title 
        37, United States Code: 301b, 301d, 301e, 308, 308b, 308h, 312, 
        314, 315, 317, 318, 319, 320, and 321.''.
    (c) Conforming Amendment.--Section 2201 of such Code is amended by 
striking ``section 112(c)'' both places it appears and inserting 
``section 112(d)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.
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