[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 721 Placed on Calendar Senate (PCS)]






                                                        Calendar No. 57
108th CONGRESS
  1st Session
                                 S. 721

 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, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 26, 2003

Mr. Allen (for himself, Mr. McCain, Mr. Chambliss, Mr. Graham of South 
Carolina, and Mr. Warner) introduced the following bill; which was read 
                             the first time

                             March 27, 2003

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 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, and for other purposes.

    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 direct 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        compensation of members of the Armed Forces) is repealed.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.

SEC. 2. AVAILABILITY OF CERTAIN TAX BENEFITS FOR MEMBERS OF THE ARMED 
              FORCES PERFORMING SERVICES AT GUANTANAMO BAY NAVAL 
              STATION, CUBA, AND IN THE HORN OF AFRICA.

    (a) General Rule.--In the case of a member of the Armed Forces of 
the United States who is entitled to special pay under section 310 of 
title 37, United States Code (relating to special pay: duty subject to 
hostile fire or imminent danger), for services performed at Guantanamo 
Bay Naval Station, Cuba, or in any country located in the region known 
as the Horn of Africa as part of Operation Enduring Freedom (or any 
successor operation), such member shall be treated in the same manner 
as if such services were in a combat zone (as determined under section 
112 of the Internal Revenue Code of 1986) for purposes of the following 
provisions of such Code:
            (1) Section 2(a)(3) (relating to special rule where 
        deceased spouse was in missing status).
            (2) Section 112 (relating to the exclusion of certain 
        combat pay of members of the Armed Forces).
            (3) Section 692 (relating to income taxes of members of 
        Armed Forces on death).
            (4) Section 2201 (relating to members of the Armed Forces 
        dying in combat zone or by reason of combat-zone-incurred 
        wounds, etc.).
            (5) Section 3401(a)(1) (defining wages relating to combat 
        pay for members of the Armed Forces).
            (6) Section 4253(d) (relating to the taxation of phone 
        service originating from a combat zone from members of the 
        Armed Forces).
            (7) Section 6013(f)(1) (relating to joint return where 
        individual is in missing status).
            (8) Section 7508 (relating to time for performing certain 
        acts postponed by reason of service in combat zone).
    (b) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), this 
        section shall take effect on the date of the enactment of this 
        Act.
            (2) Withholding.--Subsection (a)(5) shall apply to 
        remuneration paid on or after such date of enactment.




                                                        Calendar No. 57

108th CONGRESS

  1st Session

                                 S. 721

_______________________________________________________________________

                                 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, and for other purposes.

_______________________________________________________________________

                             March 27, 2003

            Read the second time and placed on the calendar