[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1624 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 1624

 To amend the Internal Revenue Code of 1986 to exclude from the gross 
   income of members of the uniformed services of the United States 
                 certain amounts of military basic pay.


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                    IN THE HOUSE OF REPRESENTATIVES

                             March 19, 2009

  Mr. Bilirakis (for himself and Mr. Carney) 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 exclude from the gross 
   income of members of the uniformed services of the United States 
                 certain amounts of military basic pay.

    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 ``Military Personnel Income Tax 
Exclusion Act''.

SEC. 2. EXCLUSION FROM GROSS INCOME FOR CERTAIN AMOUNTS OF BASIC PAY.

    (a) In General.--Subsection (a) of section 134 of the Internal 
Revenue Code of 1986 (relating to exclusion for certain military 
benefits) is amended to read as follows:
    ``(a) General Rule.--Gross income shall not include--
            ``(1) any qualified military benefit, and
            ``(2) so much of the basic pay received for active service 
        as a member of the uniformed services of the United States 
        (which would, but for this paragraph, be includible in gross 
        income) to the extent that the rate of such pay does not exceed 
        the highest rate payable for the E-1 pay grade.''.
    (b) Excluded Amounts Counted as Income for Certain Purposes.--
            (1) Refundable portion of child credit.--Paragraph (1) of 
        section 24(d) of such Code is amended by inserting ``or 
        134(a)(2)'' after ``112''.
            (2) Earned income credit.--Clause (vi) of section 
        32(c)(2)(B) of such Code is amended by inserting ``or 
        134(a)(2)'' after ``112''.
            (3) Making work pay credit.--Paragraph (2) of section 
        36A(d) of such Code is amended by inserting ``or 134(a)(2)'' 
        after ``112''.
            (4) Retirement savings.--Paragraph (7) of section 219(f) of 
        such Code is amended to read as follows:
            ``(7) Special rule for certain compensation earned by 
        members of the armed forces.--For purposes of subsections 
        (b)(1)(B) and (c), the amount of compensation includible in an 
        individual's gross income shall be determined without regard to 
        sections 112 and 134(a)(2).''.
            (5) Withholding.--Paragraph (1) of section 3401(a) of such 
        Code is amended to read as follows:
            ``(1) for active service performed in a month for which 
        such employee is entitled to the benefits of section 112 
        (relating to certain combat zone compensation of members of the 
        Armed Forces of the United States) or section 134(a)(2) 
        (relating to certain military benefits) to the extent 
        remuneration for such service is excludable from gross income 
        under section 112 or 134(a)(2), as the case may be.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid after December 31, 2008, in taxable years ending 
after such date.
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