[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1403 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 1403

 To amend the Internal Revenue Code of 1986 to provide a 2 percent tax 
 reduction for members of the Armed Forces who serve in a combat zone.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 8, 2007

Mr. Carney (for himself and Mr. Platts) 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 provide a 2 percent tax 
 reduction for members of the Armed Forces who serve in a combat zone.

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

SECTION 1. DEDUCTION FOR MEMBERS OF THE ARMED FORCES WHO SERVE IN A 
              COMBAT ZONE.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to additional itemized 
deductions) is amended by redesignating section 224 as section 225 and 
by inserting after section 223 the following new section:

``SEC. 224. MEMBERS OF THE ARMED FORCES WHO SERVE IN A COMBAT ZONE.

    ``(a) In General.--In the case of an eligible combat zone service 
member, there shall be allowed as a deduction an amount equal to 2 
percent of the taxpayer's adjusted gross income (determined without 
regard to this section).
    ``(b) Limitation.--The deduction allowed under subsection (a) with 
respect to a taxpayer for any taxable year shall not exceed $2,000.
    ``(c) Eligible Combat Zone Service Member.--For purposes of this 
section--
            ``(1) In general.--The term `eligible combat zone service 
        member' means any individual who, as of the close of the 
        taxable year (and taking into account all periods prior to such 
        taxable year), has served on active duty in a combat zone as a 
        member of the Armed Forces for an aggregate period of 90 days 
        or more.
            ``(2) Treatment of hospitalizations.--Any period of 
        hospitalization as a result of wounds, disease, or injury 
        incurred while serving in a combat zone shall be treated for 
        purposes of this section as service on active duty in a combat 
        zone.
            ``(3) Exception.--Such term shall not include any 
        individual for any taxable year if such individual has been, at 
        any time prior to the close of such taxable year, discharged or 
        released from military, naval, or air service under 
        dishonorable conditions.
            ``(4) Combat zone.--The term `combat zone' has the meaning 
        given such term under section 112(c)(2).
    ``(d) Special Rules for Joint Returns.--In the case of a joint 
return--
            ``(1) the taxpayer shall be treated as an eligible combat 
        zone service member for purposes of this section if either 
        spouse is such a member, and
            ``(2) if both spouses are eligible combat zone service 
        members (determined without regard to paragraph (1)), 
        subsection (b) shall be applied by doubling the dollar amount 
        in effect under such subsection.''.
    (b) Deduction Allowed in Computing Adjusted Gross Income.--
Subsection (a) of section 62 of such Code is amended by inserting 
before the last sentence the following new paragraph:
            ``(22) Members of the armed forces who serve in a combat 
        zone.--The deduction allowed by section 224.''.
    (c) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of such Code is amended by redesignating the 
item relating to section 224 as an item relating to section 225 and 
inserting before such item the following new item:

``Sec. 224. Members of the Armed Forces who serve in a combat zone.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.
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