[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3707 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3707

   To amend the Internal Revenue Code of 1986 to exclude combat zone 
   compensation of members of the Armed Forces from employment taxes.


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                    IN THE HOUSE OF REPRESENTATIVES

                            October 1, 2009

  Mr. Garrett of New Jersey introduced the following bill; which was 
              referred to the Committee on Ways and Means

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                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to exclude combat zone 
   compensation of members of the Armed Forces from employment taxes.

    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 ``Armed Forces Tax Relief Act of 
2009''.

SEC. 2. EXCLUSION OF COMBAT ZONE COMPENSATION OF MEMBERS OF THE ARMED 
              FORCES FROM EMPLOYMENT TAXES.

    (a) In General.--Paragraph (2) of section 3121(i) of the Internal 
Revenue Code of 1986 (relating to service in the uniformed services) is 
amended by adding at the end the following new sentence: ``The term 
`wages' shall not include remuneration for active service performed in 
a month for which such individual is entitled to the benefits of 
section 112 (relating to certain combat zone compensation of members of 
the Armed Forces of the United States) to the extent remuneration for 
such service is excludable from gross income under such section.''.
    (b) Social Security Trust Funds Held Harmless.--There is hereby 
appropriated (out of any money in the Treasury not otherwise 
appropriated) for each fiscal year to each fund under the Social 
Security Act an amount equal to the reduction in the transfers to such 
fund for such fiscal year by reason of the amendment made by subsection 
(a).
    (c) Effective Date.--The amendment made by this section shall apply 
with respect to service performed after December 31, 2008.
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