[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1404 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 1404

To amend the Internal Revenue Code of 1986 to exclude from gross income 
   a portion of the compensation received for active service and for 
        inactive-duty training as a member of the Armed Forces.


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                    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

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                                 A BILL


 
To amend the Internal Revenue Code of 1986 to exclude from gross income 
   a portion of the compensation received for active service and for 
        inactive-duty training as a member of the Armed Forces.

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

SECTION 1. EXCLUSION OF CERTAIN COMPENSATION OF MEMBERS OF THE ARMED 
              FORCES.

    (a) In General.--Section 112 of the Internal Revenue Code of 1986 
(relating to certain combat zone compensation of members of the Armed 
Forces) is amended by adding at the end the following new subsection:
    ``(e) Partial Exclusion of Non-Combat Zone Compensation.--Gross 
income does not include 2 percent of so much of the compensation 
received for active service, and inactive-duty training, as a member of 
the Armed Forces as would (but for this subsection) be includible in 
gross income.''.
    (b) Conforming Amendments.--
            (1) The heading for section 112 of such Code is amended by 
        striking ``combat zone''.
            (2) The table of sections for part III of subchapter B of 
        chapter 1 of such Code is amended by striking the item relating 
        to section 112 and inserting the following new item:

``Sec. 112. Certain compensation of members of the Armed Forces.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.
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