[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1440 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1440

 To amend the Internal Revenue Code of 1986 to provide tax relief for 
victims of the terrorist attacks against the United States on September 
                               11, 2001.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 19, 2001

  Mr. Craig introduced the following bill; which was referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide tax relief for 
victims of the terrorist attacks against the United States on September 
                               11, 2001.

    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 ``Victims of Terrorism Relief Act of 
2001''.

SEC. 2. INCOME TAXES OF VICTIMS OF TERRORIST ATTACKS.

    (a) In General.--Section 692 of the Internal Revenue Code of 1986 
(relating to income taxes of members of Armed Forces on death) is 
amended by adding at the end the following new subsection:
    ``(d) Certain Individuals Dying as a Result of September 11, 2001, 
Terrorist Attacks.--
            ``(1) In general.--In the case of any individual who dies 
        as a result of wounds or injury incurred as a result of the 
        terrorist attacks against the United States on September 11, 
        2001, any tax imposed by this subtitle shall not apply--
                    ``(A) with respect to the taxable year in which 
                falls the date of such individual's death, and
                    ``(B) with respect to any prior taxable year in the 
                period beginning with the last taxable year ending 
                before the taxable year in which the wounds or injury 
                were incurred.
            ``(2) Exception.--Paragraph (1) shall not apply to an 
        individual whom the Secretary determines was a perpetrator of 
        any such terrorist attack.''.
    (b) Conforming and Clerical Amendments.--
            (1) The heading of section 692 of such Code is amended to 
        read as follows:

``SEC. 692. INCOME TAXES OF MEMBERS OF ARMED FORCES ON DEATH AND 
              VICTIMS OF CERTAIN TERRORIST ATTACKS.''.

            (2) The item relating to section 692 in the table of 
        sections for part II of subchapter J of chapter 1 of such Code 
        is amended to read as follows:

                              ``Sec. 692. Income taxes of members of 
                                        Armed Forces on death and 
                                        victims of certain terrorist 
                                        attacks.''.
            (3) Section 5(b)(1) of such Code is amended by inserting 
        ``and victims of certain terrorist attacks'' after ``on 
        death''.
            (4) Section 6013(f)(2)(B) of such Code is amended by 
        inserting ``and victims of certain terrorist attacks'' after 
        ``on death''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending on or after September 11, 2001.

SEC. 3. RELIEF FROM ADDITIONAL ESTATE TAX.

    (a) In General.--Section 2201 of the Internal Revenue Code of 1986 
is amended--
            (1) in the first sentence by inserting ``(a) In General.--
        '' before ``The additional estate tax'', and
            (2) by adding at the end the following:
    ``(b) Victims of Certain Terrorist Attacks.--The additional estate 
tax shall not apply to the transfer of the taxable estate of any 
individual who dies as a result of wounds or injury incurred as a 
result of the terrorist attacks against the United States on September 
11, 2001. The preceding sentence shall not apply with respect to any 
individual whom the Secretary determines was a perpetrator of any such 
terrorist attack.''.
    (b) Clerical Amendments.--
            (1) The heading of section 2201 of such Code is amended to 
        read as follows:

``SEC. 2201. COMBAT ZONE-RELATED DEATHS OF MEMBERS OF THE ARMED FORCES 
              AND DEATHS OF VICTIMS OF CERTAIN TERRORIST ATTACKS.''.

            (2) The item relating to section 2201 in the table of 
        sections for subchapter C of chapter 11 of such Code is amended 
        to read as follows:

                              ``Sec. 2201. Combat zone-related deaths 
                                        of members of the Armed Forces 
                                        and deaths of victims of 
                                        certain terrorist attacks.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying on or after September 11, 2001.
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