[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 394 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 394

 To amend the Internal Revenue Code of 1986 to expand the combat zone 
income tax exclusion to include income for the period of transit to the 
    combat zone and to remove the limitation on such exclusion for 
                         commissioned officers.


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                   IN THE SENATE OF THE UNITED STATES

                           February 13, 2003

   Mr. Allen introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

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                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to expand the combat zone 
income tax exclusion to include income for the period of transit to the 
    combat zone and to remove the limitation on such exclusion for 
                         commissioned officers.

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

SECTION 1. EXPANSION OF INCOME TAX EXCLUSION FOR COMBAT ZONE SERVICE.

    (a) Combat Zone Service To Include Transit to Zone.--Section 
112(c)(3) of the Internal Revenue Code of 1986 (relating to 
definitions) is amended by adding at the end the following new 
sentence: ``Such service shall include any period of transit to the 
combat zone.''.
    (b) Removal of Limitation on Exclusion for Commissioned Officers.--
            (1) In general.--Subsection (b) of section 112 of the 
        Internal Revenue Code of 1986 (relating to certain combat zone 
        compensation of members of the Armed Forces) is repealed.
            (2) Conforming amendments.--
                    (A) Section 112(a) of such Code is amended--
                            (i) by striking ``below the grade of 
                        commissioned officer'', and
                            (ii) by striking ``Enlisted Personnel'' in 
                        the heading and inserting ``In General''.
                    (B) Section 112(c) of such Code is amended by 
                striking paragraphs (1) and (5) and by redesignating 
                paragraphs (2), (3), and (4) as paragraphs (1), (2), 
                and (3), respectively.
    (c) Effective Date.--The amendments made by this section shall 
apply to months beginning after the date of the enactment of this Act.
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