[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2783 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2783

 To amend the Internal Revenue Code of 1986 to restore the tax exempt 
status of death gratuity payments to members of the uniformed services.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 24, 2002

 Mrs. Carnahan 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 restore the tax exempt 
status of death gratuity payments to members of the uniformed services.

    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 ``Honor Our Heroes Act''.

SEC. 2. RESTORATION OF FULL EXCLUSION FROM GROSS INCOME OF DEATH 
              GRATUITY PAYMENT.

    (a) In General.--Subsection (b)(3) of section 134 of the Internal 
Revenue Code of 1986 (relating to certain military benefits) is amended 
by adding at the end the following new subparagraph:
                    ``(C) Exception for death gratuity adjustments made 
                by law.--Subparagraph (A) shall not apply to any 
                adjustment to the amount of death gratuity payable 
                under chapter 75 of title 10, United States Code, which 
                is pursuant to a provision of law enacted after 
                September 9, 1986.''.
    (b) Conforming Amendment.--Subparagraph (A) of section 134(b)(3) of 
such Code is amended by striking ``subparagraph (B)'' and inserting 
``subparagraphs (B) and (C)''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to deaths occurring after September 10, 2001.
                                 <all>