[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3808 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3808

 To amend the Internal Revenue Code of 1986 to permanently extend the 
 special rule treating combat pay as earned income for purposes of the 
    earned income credit and to increase the standard deduction for 
   individuals performing service in the uniformed services while on 
             active duty for a period of more than 30 days.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 10, 2007

   Ms. Giffords (for herself, Mr. Johnson of Georgia, Mr. Murphy of 
   Connecticut, Mr. Meek of Florida, Mr. Brady of Pennsylvania, Mr. 
Altmire, Ms. Berkley, Mr. Grijalva, Mr. Israel, Mr. Carney, Mr. Pastor, 
    Mr. McCaul of Texas, Mr. Mitchell, and Mr. Hare) 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 permanently extend the 
 special rule treating combat pay as earned income for purposes of the 
    earned income credit and to increase the standard deduction for 
   individuals performing service in the uniformed services while on 
             active duty for a period of more than 30 days.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Combat Troops Tax Relief Act of 
2007''.

SEC. 2. PERMANENT EXTENSION OF SPECIAL RULE TREATING COMBAT PAY AS 
              EARNED INCOME FOR EARNED INCOME CREDIT.

    (a) In General.--Clause (vi) of section 32(c)(2)(B) of the Internal 
Revenue Code of 1986 (relating to 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) Provision Not Subject to Sunset.--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.

SEC. 3. TEMPORARY INCREASE IN STANDARD DEDUCTION FOR ACTIVE DUTY 
              MILITARY PERSONNEL.

    (a) In General.--Paragraph (3) of section 63(c) of the Internal 
Revenue Code of 1986 (defining additional standard deduction for the 
aged and blind) is amended to read as follows:
            ``(3) Additional standard deduction.--For the purposes of 
        paragraph (1), the additional standard deduction is the sum 
        of--
                    ``(A) the sum of each additional amount to which 
                the taxpayer is entitled under subsection (f), plus
                    ``(B) in the case of a taxable year beginning in 
                2007 or 2008, an additional amount of $1,000 for an 
                individual for such taxable year if the individual who 
                at any time during such taxable year is performing 
                service in the uniformed services while on active duty 
                for a period of more than 30 days.''.
    (b) Conforming Amendments.--
            (1) Section 3402(m)(3) of the Internal Revenue Code of 1986 
        is amended by striking ``for the aged and blind''.
            (2) Section 6012(a)(1)(B) of such Code is amended by adding 
        at the end the following new sentence: ``The preceding sentence 
        shall be applied without regard to section 63(c)(3)(B) and each 
        of the amounts specified in subparagraph (A) shall be increased 
        by the portion of any additional standard deduction to which 
        the individual is entitled by reason of section 63(c)(3)(B).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.
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