[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 756 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 756

   To amend the Internal Revenue Code of 1986 to exclude from income 
 taxation all compensation received for active service as a member of 
                 the Armed Forces of the United States.


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                    IN THE HOUSE OF REPRESENTATIVES

                           February 10, 2005

 Mr. Culberson (for himself, Mr. Garrett of New Jersey, Mr. Paul, Mr. 
 Rogers of Alabama, Mr. Cunningham, Mr. Souder, Mr. Miller of Florida, 
 and Ms. Hooley) 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 exclude from income 
 taxation all compensation received for active service as a member of 
                 the Armed Forces of the United States.

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

SECTION 1. EXCLUSION FOR COMPENSATION RECEIVED FOR ACTIVE SERVICE AS A 
              MEMBER OF THE ARMED FORCES OF THE UNITED STATES.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 112 
the following new section:

``SEC. 113. COMPENSATION RECEIVED FOR ACTIVE SERVICE AS A MEMBER OF THE 
              ARMED FORCES.

    ``Gross income shall not include compensation received for active 
service as a member of the Armed Forces of the United States. The 
preceding sentence shall not apply to pensions and retirement pay.''.
    (b) Termination of Limited Exclusion for Combat Pay.--Section 112 
of such Code (relating to certain combat zone compensation of members 
of Armed Forces) is amended by adding at the end the following new 
subsection:
    ``(e) Termination.--Except for purposes of applying subtitle C, 
this section shall not apply to any taxable year ending after the date 
of the enactment of this subsection.''.
    (c) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 112 the following new item:

``Sec. 113. Compensation received for active service as a member of the 
                            Armed Forces.''.
    (d) 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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