[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1424 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1424

  To amend the Internal Revenue Code of 1986 to provide the same tax 
              treatment for special pay as for combat pay.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 22, 1999

 Mr. Edwards (for himself and Mrs. Hutchison) 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 provide the same tax 
              treatment for special pay as for combat pay.

    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 ``Tax Exempt Military Pay Orders 
(TEMPO) Act''.

SEC. 2. TAX TREATMENT OF SPECIAL PAY FOR MEMBERS OF THE ARMED FORCES.

    (a) In General.--Subchapter C of chapter 80 of the Internal Revenue 
Code of 1986 (relating to provisions affecting more than one subtitle) 
is amended by adding at the end the following:

``SEC. 7874. TREATMENT OF SPECIAL PAY FOR MEMBERS OF THE ARMED FORCES.

    ``(a) General Rule.--For purposes of the following provisions, a 
special pay area shall be treated in the same manner as if it were a 
combat zone (as determined under section 112):
            ``(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) Special Pay Area.--For purposes of this section, the term 
`special pay area' means any area in which an individual receives 
special pay under section 310 of title 37, United States Code, for 
services performed in such area.''
    (b) Conforming Amendment.--The table of sections for subchapter C 
of chapter 80 of the Internal Revenue Code of 1986 is amended by adding 
at the end the following:

                              ``Sec. 7874. Treatment of special pay.''
    (c) Effective Date.--The amendments made by this section shall 
apply to remuneration paid in taxable years ending after the date of 
the enactment of this Act.
                                 <all>