[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1898 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1898

   To amend the Internal Revenue Code of 1986 to allow taxpayers to 
 designate part or all of any income tax refund to support reservists 
                      and National Guard members.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 20, 2003

  Mr. Coleman 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 allow taxpayers to 
 designate part or all of any income tax refund to support reservists 
                      and National Guard members.

    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 ``Voluntary Support for Reservists and 
National Guard Members Act''.

SEC. 2. DESIGNATION OF OVERPAYMENTS TO SUPPORT RESERVISTS.

    (a) Designation.--
            (1) In general.--Subchapter A of chapter 61 of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following new part:

      ``PART IX--DESIGNATION OF OVERPAYMENTS TO SUPPORT RESERVISTS

                              ``Sec. 6097. Designation.

``SEC. 6097. DESIGNATION.

    ``(a) In General.--In the case of an individual, with respect to 
each taxpayer's return for the taxable year of the tax imposed by 
chapter 1, such taxpayer may designate that a specified portion (not 
less than $1) of any overpayment of tax for such taxable year be paid 
over to the Reservist Income Differential Trust Fund.
    ``(b) Manner and Time of Designation.--A designation under 
subsection (a) may be made with respect to any taxable year only at the 
time of filing the return of the tax imposed by chapter 1 for such 
taxable year. Such designation shall be made in such manner as the 
Secretary prescribes by regulations except that such designation shall 
be made either on the first page of the return or on the page bearing 
the taxpayer's signature.
    ``(c) Overpayments Treated as Refunded.--For purposes of this 
title, any portion of an overpayment of tax designated under subsection 
(a) shall be treated as--
            ``(1) being refunded to the taxpayer as of the last date 
        prescribed for filing the return of tax imposed by chapter 1 
        (determined without regard to extensions) or, if later, the 
        date the return is filed, and
            ``(2) a contribution made by such taxpayer on such date to 
        the United States.''.
            (2) Transfers to reservist income differential trust 
        fund.--The Secretary of the Treasury shall, from time to time, 
        transfer to the Reservist Income Differential Trust Fund the 
        amounts designated under section 6097 of the Internal Revenue 
        Code of 1986.
            (3) Clerical amendment.--The table of parts for subchapter 
        A of chapter 61 of the Internal Revenue Code of 1986 is amended 
        by adding at the end the following new item:

                              ``Part IX. Designation of overpayments to 
                                        support reservists.''.
    (b) Reservist Income Differential Trust Fund.--
            (1) In general.--Subchapter A of chapter 98 of the Internal 
        Revenue Code of 1986 (relating to trust fund code) is amended 
        by adding at the end the following new section:

``SEC. 9511. RESERVIST INCOME DIFFERENTIAL TRUST FUND.

    ``(a) Establishment.--There is established in the Treasury of the 
United States a trust fund to be known as the `Reservist Income 
Differential Trust Fund', consisting of such amounts as may be 
appropriated or credited to such Trust Fund as provided in this section 
or section 9602(b).
    ``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the Reservist Income Differential Trust Fund amounts equivalent to the 
amounts designated under section 6097 (relating to designation of 
overpayments to support reservists).
    ``(c) Expenditures.--Amounts in the Reservist Income Differential 
Trust Fund shall be available for making distributions to eligible 
members of reserve components in accordance with section 212 of title 
37, United States Code.''.
            (2) Clerical amendment.--The table of sections for such 
        subchapter is amended by adding at the end the following new 
        item:

                              ``Sec. 9511. Reservist Income 
                                        Differential Trust Fund.''.
    (c) Effective Dates.--
            (1) Subsection (a).--The amendments made by subsection (a) 
        shall apply to taxable years beginning after December 31, 2003.
            (2) Subsection (b).--The amendments made by subsection (b) 
        shall take effect on the date of the enactment of this Act.

SEC. 3. PAY DIFFERENTIAL FOR MOBILIZED RESERVES.

    (a) Authority.--
            (1) In general.--Chapter 3 of title 37, United States Code, 
        is amended by adding at the end the following new section:
``Sec. 212. Reserves on active duty: pay differential for service in 
              support of a contingency operation
    ``(a) Authority.--To the extent provided in appropriations Acts, 
the Secretary of a military department shall pay an eligible member of 
a reserve component of the armed forces a pay differential computed 
under subsection (c).
    ``(b) Eligible Member.--A member of a reserve component is eligible 
for a pay differential for each month during which the member is 
serving on active duty for a period of more than 30 days pursuant to a 
call or order to active duty under a provision of law referred to in 
section 101(a)(13)(B) of title 10.
    ``(c) Amount.--(1) Subject to paragraphs (2) and (3), the amount of 
a pay differential paid under this section for a month to a member 
called or ordered to active duty as described in subsection (b) shall 
be equal to the excess of--
            ``(A) the monthly rate of the salary, wage, or similar form 
        of compensation that applied to the member in the member's 
        position of employment (if any) for the last full month before 
        the month in which the member either commenced the period of 
        active duty to which called or ordered or commenced the 
        performance of duties for the armed forces in another duty 
        status in preparation for the performance of the active duty to 
        which called or ordered, over
            ``(B) the monthly rate of basic pay payable to the member 
        under section 204 of this title for such month of active-duty 
        service.
    ``(2) The Secretary concerned may pay a member a pay differential 
under this section for a month in an amount less than the amount 
computed under paragraph (1) if the Secretary concerned determines that 
it is necessary to do so on the basis of the availability of funds for 
such purpose.
    ``(3) A member may not be paid more than a total of $25,000 under 
this section.
    ``(d) Funding.--(1) Pay differentials under this section shall be 
paid out of funds that are transferred from the Reservist Income 
Differential Trust Fund to military personnel accounts for the purposes 
of this section.
    ``(2) The Secretary of Defense and the Secretary of the Treasury 
shall jointly prescribe regulations providing for transfers of funds in 
the Reservist Income Differential Trust Fund to the appropriate 
military personnel accounts to make payments under this section.
    ``(3) In this section, the term `Reservist Income Differential 
Trust Fund' means the Reservist Income Differential Trust Fund referred 
to in section 6097 of the Internal Revenue Code.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``212. Reserves on active duty: pay differential for service in support 
                            of a contingency operation.''.
    (b) Effective Date.--Section 212 of title 37, United States Code, 
shall take effect on October 1, 2004, and shall apply with respect to 
months that begin on or after that date.
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