[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 516 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                 S. 516

To amend the Internal Revenue Code of 1986 to make permanent the option 
         of including combat pay when computing earned income.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 7, 2007

 Mr. Pryor (for himself, Mr. Warner, and Mrs. Lincoln) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to make permanent the option 
         of including combat pay when computing earned income.

    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 ``Tax Relief for Americans in Combat 
Act'' or the ``TRAC Act''.

SEC. 2. EARNED INCOME INCLUDES COMBAT PAY.

    (a) Earned Income Credit.--Clause (vi) of section 32(c)(2)(B) of 
the Internal Revenue Code of 1986 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) Repeal of EGTRRA Sunset Applicability.--Section 105 of the 
Working Families Tax Relief Act of 2004 shall not apply to the 
amendments made by section 104(b) of such Act.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years ending after December 31, 2006.
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