II 110th CONGRESS 2d Session S. 2599 IN THE SENATE OF THE UNITED STATES February 6, 2008 Mr. Corker (for himself and Mrs. McCaskill) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To provide enhanced education and employment opportunities for military spouses.

1.

Short title

This Act may be cited as the Military Spouse Education and Employment Act of 2008.

2.

Definitions

In this Act: (1)

Congressional defense committees

The term congressional defense committees means— (A)the Committee on Armed Services and the Committee on Appropriations of the Senate; and (B)the Committee on Armed Services and the Committee on Appropriations of the House of Representatives. (2)

Qualified military spouse

The term qualified military spouse means a spouse of a member of the Armed Forces of the United States who is serving on a period of extended active duty which includes the hiring date. For purposes of the preceding sentence, the term extended active duty means any period of active duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.

3.

Eligibility of spouses of military personnel for the work opportunity credit

(a)

In general

Paragraph (1) of section 51(d) of the Internal Revenue Code of 1986 is amended by striking or at the end of subparagraph (H), by striking the period at the end of subparagraph (I) and inserting , or, and by adding at the end the following new subparagraph: (J)either— (i)a qualified military spouse (as defined in subsection (l)(1)), or (ii)subject to subsection (l)(2), an eligible teleworking military spouse. . (b)

Definitions and rules relating to qualified military spouses

Section 51 of such Code is amended by adding at the end the following new subsection: (l)

Definition of qualified military spouse; enhanced credit for eligible teleworking military spouses

For purposes of this section— (1)

Definition of qualified military spouse

For purposes of subsection (d)(1)(J), the term qualified military spouse means any individual (other than an eligible teleworking military spouse) who is certified by the designated local agency as being a spouse (determined as of the hiring date) of a member of the Armed Forces of the United States who is serving on a period of extended active duty which includes the hiring date. For purposes of the preceding sentence, the term extended active duty means any period of active duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period. (2)

Enhanced credit for eligible teleworking military spouses

(A)

In general

Notwithstanding subsection (a), in the case of an employer with respect to whom an individual is an eligible teleworking military spouse by reason of employment with such employer described in subparagraph (B), the credit determined under this section— (i)shall be allowable for any taxable year which includes any portion of the eligibility period with respect to the spouse, and (ii)shall, with respect to any such taxable year, be equal to 40 percent of the qualified wages paid by the employer with respect to such employment occurring during such portion of the eligibility period. (B)

Eligible teleworking military spouse

For purposes of subsection (d)(1)(J) and this paragraph, the term eligible teleworking military spouse means, with respect to any employer, an individual— (i)who is certified by the designated local agency as being a spouse (determined as of the hiring date) of a member of a regular component of the Armed Forces of the United States, (ii)substantially all of whose employment with the employer is reasonably expected to consist of services performed at the principal residence (within the meaning of section 121) of the individual, and (iii)whose qualified wages (expressed as an annual amount) for services performed for the employer are reasonably expected to equal or exceed an amount equal to 150 percent of the median annual earnings for the United States (determined on the basis of the most recent occupational employment survey published by the Bureau of Labor Statistics before the calendar year in which the taxable year begins). (C)

Eligibility period

For purposes of this paragraph— (i)

In general

The term eligibility period means, with respect to any individual who is an eligible teleworking military spouse, the period— (I)beginning on the hiring date of the individual, and (II)except as provided in clause (ii), ending on the earlier of the last day of the employment described in subparagraph (B) or the last day of the taxable year in which occurs the date on which the individual's spouse ceases to be a member of a regular component of the Armed Forces of the United States. (ii)

Failure to meet employment and wage requirements

If the requirements of clauses (ii) and (iii) of subparagraph (B) are not met with respect to any individual for any taxable year— (I)the individual shall cease to be an eligible teleworking military spouse with respect to the employer as of the beginning of the taxable year, and (II)the employer shall not treat the individual as an eligible teleworking military spouse for any subsequent taxable year. This clause shall not apply to any failure which is due to unforeseen circumstances or is beyond the control of the employer.(D)

Qualified wages

The term qualified wages has the meaning given such term by subsection (b)(1), except that the amount of wages which may be taken into account with respect to any eligible teleworking military spouse for any taxable year shall not exceed $12,000. . (c)

Effective date

The amendments made this section shall apply to amounts paid or incurred after the date of the enactment of this Act to individuals who begin work for the employer after such date.

4.

Federal employment preferences

(a)

Eligibility of military spouses for preference

Section 2108(3) of title 5, United States Code, is amended— (1)in subparagraph (F)(iii), by striking ; and and inserting a semicolon; (2)in subparagraph (G)(iii), by striking the semicolon at the end and inserting ; and; and (3)by inserting after subparagraph (G) the following new subparagraph: (H)the wife or husband of an individual serving on active duty or with orders to report for a period of active duty in excess of 90 days or for an indefinite period; . (b)

Eligibility for additional points above earned rating on competitive service examinations

Section 3309(2) of such title is amended to read as follows: (2)a preference eligible under subparagraphs (A), (B), or (H) of section 2108(3) of this title—5 points. .

5.

Transferability of entitlement to basic educational assistance

(a)

Transferability as incentive To reenlist for third term of service

Section 3020 of title 38, United States Code, is amended— (1)in the heading, by striking : members of the Armed Forces with critical military skills and inserting : members of the Armed Forces who reenlist for a third term; (2)in subsection (a), by striking with critical military skills and inserting who have completed two terms of service and reenlisted for a third term,; (3)in subsection (b), by striking section— and all that follows through the period at the end and inserting section, has completed two terms of service in the Armed Forces and enters into an agreement for a third term.; (4)in subsection (g)— (A)in paragraph (1), by striking six years of service and inserting two terms of service; and (B)in paragraph (2), by striking 10 years of service and inserting two terms of service. (b)

Clerical amendment

The table of sections at the beginning of chapter 30 of such title is amended by amending the item relating to section 3020 to read as follows: 3020. Transfer of entitlement to basic educational assistance: members of the Armed Forces who reenlist for a third term. .

6.

Study on development of education grant program for training military spouses in health care and early childhood development

(a)

Study

The Deputy Under Secretary of Defense for Military Community and Family Policy, in conjunction with the Assistant Secretary of Defense for Health Affairs, shall conduct a study on options for developing an education grant program to train military spouses in the health care and early childhood development careers, including the likelihood that such training could significantly increase private employment opportunities in the vicinity of active duty military installations. (b)

Report

Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense, in consultation with the Deputy Under Secretary of Defense for Military Community and Family Policy and the Assistant Secretary of Defense for Health Affairs, shall submit to the congressional defense committees a report on the study conducted under subsection (a).

7.

Study on creating work opportunities for undergraduate and graduate level educated military spouses

(a)

Study

The Under Secretary of Defense for Personnel and Readiness, in conjunction with the Deputy Under Secretary of Defense for Military Community and Family Policy, shall conduct a study of the challenges that face qualified military spouses who possess an undergraduate or graduate level education in finding and maintaining employment during the terms of service of their active duty spouses. (b)

Report

(1)

In general

Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense, in consultation with the Under Secretary of Defense for Personnel and Readiness, shall submit to the congressional committees a report on the study conducted under subsection (a). (2)

Elements

The report required under paragraph (1) shall include the following elements: (A)A description of the major challenges that face qualified military spouses who posses an undergraduate or graduate level education in finding and maintaining employment during the terms of service of their spouses. (B)A listing of significant incentive programs the Department of Defense could utilize to create incentives for the hiring of undergraduate and graduate level qualified military spouses, including those the Department can implement independently and those that require statutory changes. (C)A description of the resources available to qualified military spouses with graduate and undergraduate educations for assistance in finding and maintaining employment. (D)An examination of the retention implications of insufficient employment opportunities for qualified military spouses with undergraduate or graduate level educations. (E)A description of current programs to assist qualified military spouses with undergraduate and graduate level educations in securing telecommuting and home office employment.