110 HR 3736 IH: Combat Pay Tax Flexibility Act of U.S. House of Representatives 2007-10-03 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 3736 IN THE HOUSE OF REPRESENTATIVES October 3, 2007 Mr. Braley of Iowa 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 election to treat combat pay as earned income for purposes of the earned income tax credit.

1.

Short title

This Act may be cited as the Combat Pay Tax Flexibility Act of 2007.

2.

Election to treat combat pay as earned income for purposes of the earned income tax credit made permanent

(a)

In general

Clause (vi) of section 32(c)(2)(B) of the Internal Revenue Code of 1986 (defining earned income) 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)

Sunset not applicable

Section 105 of the Working Families Tax Relief Act of 2004 (relating to application of EGTRRA sunset to this title) shall not apply to section 104(b) of such Act. (c)

Effective date

The amendment made by this section shall apply to taxable years ending after December 31, 2007.