[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3933 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3933

 To amend the Internal Revenue Code of 1986 to permanently extend the 
  election to include combat pay as earned income for purposes of the 
earned income tax credit and penalty-free distributions from retirement 
  plans to individuals called to active duty, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 23, 2007

  Ms. Clarke 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 
  election to include combat pay as earned income for purposes of the 
earned income tax credit and penalty-free distributions from retirement 
  plans to individuals called to active duty, and for other purposes.

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

SECTION 1. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME FOR PURPOSES 
              OF 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.

SEC. 2. PENALTY-FREE DISTRIBUTIONS FROM RETIREMENT PLANS TO INDIVIDUALS 
              CALLED TO ACTIVE DUTY MADE PERMANENT.

    (a) In General.--Clause (iv) of section 72(t)(2)(G) of the Internal 
Revenue Code of 1986 is amended by striking ``, and before December 31, 
2007''.
    (b) Effective Date.--The amendment made by this section shall apply 
to individuals ordered or called to active duty on or after December 
31, 2007.

SEC. 3. STATE ANNUITIES FOR BLIND VETERANS TO BE DISREGARDED IN 
              DETERMINING SUPPLEMENTAL SECURITY INCOME BENEFITS.

    (a) Income Disregard.--Section 1612(b) of the Social Security Act 
(42 U.S.C. 1382a(b)) is amended--
            (1) by striking ``and'' at the end of paragraph (22);
            (2) by striking the period at the end of paragraph (23) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(24) any annuity paid by a State to the individual (or 
        such spouse) on the basis of the individual's being a veteran 
        (as defined in section 101 of title 38, United States Code) and 
        blind.''.
    (b) Resource Disregard.--Section 1613(a) of such Act (42 U.S.C. 
1382b(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (14);
            (2) by striking the period at the end of paragraph (15) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (15) the following:
            ``(16) for the month of receipt and every month thereafter, 
        any annuity paid by a State to the individual (or such spouse) 
        on the basis of the individual's being a veteran (as defined in 
        section 101 of title 38, United States Code) and blind.''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to benefits payable for months beginning after 
60 days after the date of the enactment of this Act
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