[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3400 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 3400

To amend the Internal Revenue Code of 1986 to make permanent the option 
         of including combat pay when computing earned income.


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                    IN THE HOUSE OF REPRESENTATIVES

                             July 21, 2005

  Mr. Terry introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to make permanent the option 
         of including combat pay when computing earned income.

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

SECTION 1. EARNED INCOME INCLUDES COMBAT PAY.

    (a) Earned Income Credit.--Clause (vi) of section 32(c)(2)(B) of 
the Internal Revenue Code of 1986 is amended to read as follows:
                            ``(vi) a taxpayer may elect to treat 
                        amounts excluded from gross income by reason of 
                        section 112 as earned income.''.
    (b) Repeal of EGTRRA Sunset Applicability.--Section 105 of the 
Working Families Tax Relief Act of 2004 shall not apply to the 
amendments made by section 104(b) of such Act.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years ending after December 31, 2005.
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