1.
Exclusion of gain from sale of a principal residence by certain
employees of the intelligence community
(a)
Subparagraph (A) of section
121(d)(9) of the Internal Revenue Code (relating to exclusion of gain from sale
of principal residence) is amended by striking duty
and all that
follows and inserting
duty—
(i)
as a member of the
uniformed services,
(ii)
as a member of the Foreign
Service of the United States, or
(iii)
as an employee of the
intelligence community.
.
(b)
Employee of intelligence community defined
Subparagraph (C) of section
121(d)(9) of the Internal Revenue Code of 1986 is amended by redesignating
clause (iv) as clause (v) and by inserting after clause (iii) the following new
clause:
(iv)
Employee of intelligence community
The term employee of
the intelligence community means an employee (as defined by section 2105
of title 5, United States Code) of—
(I)
the Office of the Director
of National Intelligence,
(II)
the Central Intelligence
Agency,
(III)
the National Security
Agency,
(IV)
the Defense Intelligence
Agency,
(V)
the National
Geospatial-Intelligence Agency,
(VI)
the National Reconnaissance
Office,
(VII)
any other office within the
Department of Defense for the collection of specialized national intelligence
through reconnaissance programs,
(VIII)
any of the intelligence
elements of the Army, the Navy, the Air Force, the Marine Corps, the Federal
Bureau of Investigation, the Department of Treasury, the Department of Energy,
and the Coast Guard,
(IX)
the Bureau of Intelligence
and Research of the Department of State, or
(X)
any of the elements of the
Department of Homeland Security concerned with the analyses of foreign
intelligence information.
.
(c)
Subparagraph (C) of section
121(d)(9) of the Internal Revenue Code of 1986, as amended by subsection (b),
is amended by adding at the end the following new clause:
(vi)
Special rule relating to intelligence community
An employee of the
intelligence community shall not be treated as serving on qualified extended
duty unless—
(I)
for purposes of such duty
such employee has moved from 1 duty station to another, and
(II)
at least 1 of such duty
stations is located outside of the Washington, District of Columbia, and
Baltimore metropolitan statistical areas (as defined by the Secretary of
Commerce).
.
(d)
The heading for section
121(d)(9) of the Internal Revenue Code of 1986 is amended to read as follows:
Uniformed services,
foreign service, and intelligence community
.
(e)
Effective date; special rule
(1)
The amendments made by this
section shall take effect as if included in the amendments made by section 312
of the Taxpayer Relief Act of 1997.
(2)
If refund or credit of any
overpayment of tax resulting from the amendments made by this section is
prevented at any time before the close of the 1-year period beginning on the
date of the enactment of this Act by the operation of any law or rule of law
(including res judicata), such refund or credit may nevertheless be made or
allowed if claim therefor is filed before the close of such period.