[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2213 Introduced in Senate (IS)]






107th CONGRESS
  2d Session
                                S. 2213

To amend the Internal Revenue Code of 1986 to exclude from gross income 
   certain overseas pay of members of the Armed Forces of the United 
                                States.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 18, 2002

  Mr. Dayton (for himself and Mr. Sessions) 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 exclude from gross income 
   certain overseas pay of members of the Armed Forces of the United 
                                States.

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

SECTION 1. EXCLUSION OF CERTAIN OVERSEAS PAY OF MEMBERS OF THE ARMED 
              FORCES.

    (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 112 the 
following new section:

``SEC. 113. CERTAIN OVERSEAS PAY OF MEMBERS OF THE ARMED FORCES.

    ``(a) In General.--Gross income does not include compensation 
received for covered service as a member in the Armed Forces of the 
United States.
    ``(b) Covered Service.--For purposes of this section--
            ``(1) In general.--The term `covered service', with respect 
        to a member, means service outside the United States in an 
        assignment that is a permanent change of station for which 
        travel, transportation, and housing of dependents at Government 
        expense would generally not be authorized under policies of the 
        Secretary concerned that are applicable to that assignment, 
        except in the case of service in such an assignment for which 
        such travel, transportation, and housing is actually authorized 
        as an exception to the applicable policy.
            ``(2) Secretary concerned.--The term `Secretary concerned' 
        has the meaning given the term in section 101(a)(9) of title 
        10, United States Code.''.
    (b) Conforming Amendment.--Section 3401(a) of the Internal Revenue 
Code of 1986 is amended by striking ``or'' at the end of paragraph 
(20), by striking the period at the end of paragraph (21) and inserting 
``; or'', and by adding at the end the following new paragraph:
            ``(22) as compensation described in section 113.''.
    (c) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is 
amended by inserting after the item relating to section 112 the 
following new item:

                              ``Sec. 113. Certain overseas pay of 
                                        members of the Armed Forces.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to remuneration paid in taxable years beginning after the date of 
the enactment of this Act.
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