[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2419 Introduced in Senate (IS)]







108th CONGRESS
  2d Session
                                S. 2419

To amend the Internal Revenue Code of 1986 to provide additional relief 
          for members of the Armed Forces and their families.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 13, 2004

 Mr. Pryor (for himself and Mr. Baucus) 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 provide additional relief 
          for members of the Armed Forces and their families.

    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 ``Tax Relief for Americans in Combat 
Act''.

SEC. 2. EARNED INCOME INCLUDES COMBAT PAY.

    (a) Child Tax Credit.--Section 24(d)(1) of the Internal Revenue 
Code of 1986 (relating to portion of credit refundable) is amended by 
adding at the end the following new sentence: ``For purposes of 
subparagraph (B), any amount excluded from gross income by reason of 
section 112 shall be treated as earned income which is taken into 
account in computing taxable income for the taxable year.''.
    (b) Earned Income Tax Credit.--Subparagraph (B) of section 32(c)(2) 
of the Internal Revenue Code of 1986 (relating to earned income) is 
amended--
            (1) by striking ``and'' at the end of clause (iv),
            (2) by striking the period at the end of clause (v) and 
        inserting ``, and'', and
            (3) by adding at the end the following:
                            ``(vi) any amount excluded from gross 
                        income by reason of section 112 shall be 
                        treated as earned income.
                Any taxpayer may elect to not apply clause (vi) with 
                respect to any taxable year ending after the date of 
                the enactment of such clause and before 2005.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.
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