[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1299 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1299

To amend the Internal Revenue Code of 1986 to allow a refundable credit 
   to members of the Armed Forces who serve on active duty during a 
                             taxable year.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 2001

 Mr. Capuano (for himself, Mr. Stupak, Mrs. Thurman, Mr. King, and Mr. 
    Brady of Pennsylvania) 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 allow a refundable credit 
   to members of the Armed Forces who serve on active duty during a 
                             taxable year.

    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 ``Military Tax Credit Act of 2001''.

SEC. 2. REFUNDABLE CREDIT FOR ACTIVE DUTY MEMBERS OF THE ARMED FORCES.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 35 as section 36 and by inserting 
after section 34 the following new section:

``SEC. 35. ACTIVE DUTY MEMBERS OF THE ARMED FORCES.

    ``(a) In General.--In the case of an individual who is an eligible 
member of the Armed Forces at any time during the taxable year, there 
shall be allowed as a credit against the tax imposed by this subtitle 
the amount determined under subsection (b).
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of credit determined under 
        this subsection for a taxable year is--
                    ``(A) except as otherwise provided in this 
                paragraph, $2,800,
                    ``(B) $4,000, in the case of a joint return,
                    ``(C) $2,000 in the case of a taxpayer who--
                            ``(i) is married as of the close of the 
                        taxable year (within the meaning of section 
                        7703) but does not file a joint return for such 
                        year, and
                            ``(ii) does not live apart from his spouse 
                        at all times during the taxable year.
            ``(2) Partial years.--In the case of an individual who is 
        an eligible member of the Armed Forces for less than an entire 
        taxable year, the amount of credit determined under this 
        subsection is the amount which bears the same ratio to the 
        amount determined under paragraph (1) as the number of days 
        during the taxable year that the individual is such an eligible 
        member bears to 365.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Eligible member of the armed forces.--The term 
        `eligible member of the Armed Forces' means, with respect to 
        any day, any officer or enlisted member of the Armed Forces 
        serving on active duty on such day.
            ``(2) Active duty.--The term `active duty' means active 
        duty for a period of more than 30 days or full-time National 
        Guard duty.
            ``(3) Other definitions.--The terms `active duty for a 
        period of more than 30 days', `Armed Forces', `enlisted 
        member', `full-time National Guard duty', and `officer' have 
        the meanings given such terms in section 101 of title 10, 
        United States Code.''
    (b) Conforming Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting before the period ``, or 
        from section 35 of such Code''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of such Code is amended by striking 
        the last item and inserting the following new items:

                              ``Sec. 35. Active duty members of the 
                                        Armed Forces.
                              ``Sec. 36. Overpayments of tax.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.
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