[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6341 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6341

To amend the Internal Revenue Code of 1986 to allow a partial exclusion 
  under section 911 for foreign earned income of employees of United 
States Government contractors who do not fulfill their foreign country 
residency requirements by reason of an Armed Forces troop reduction or 
              similar cause beyond the employer's control.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 2, 2012

 Mr. Palazzo 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 allow a partial exclusion 
  under section 911 for foreign earned income of employees of United 
States Government contractors who do not fulfill their foreign country 
residency requirements by reason of an Armed Forces troop reduction or 
              similar cause beyond the employer's control.

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

SECTION 1. PARTIAL SECTION 911 EXCLUSION FOR EMPLOYEES OF UNITED STATES 
              GOVERNMENT CONTRACTORS.

    (a) In General.--Subsection (d) of section 911 of the Internal 
Revenue Code of 1986 (relating to definitions and special rules) is 
amended by redesignating paragraphs (5) through (9) as paragraphs (6) 
through (10), respectively, and by inserting after paragraph (4) the 
following new paragraph:
            ``(5) Waiver of period of stay in foreign country on 
        account of termination of defense contract, etc.--
                    ``(A) In general.--The requirements of paragraph 
                (4)(B) shall be treated as met by an employee of a 
                United States Government contractor who, before meeting 
                the requirements of paragraph (1), leaves the foreign 
                country referred to in paragraph (4)(A) as a direct 
                result of--
                            ``(i) a reduction in the number of 
                        personnel serving in a combat zone in such 
                        country as members of the Armed Forces of the 
                        United States,
                            ``(ii) a termination of the contract under 
                        which such contractor is performing services in 
                        a combat zone in such country or in direct 
                        support of operations of the Armed Forces of 
                        the United States in a combat zone in such 
                        country, or
                            ``(iii) the termination of such employee's 
                        employment with the contractor on account of 
                        either of the foregoing.
                    ``(B) United states government contractor.--For 
                purposes of subparagraph (A), the term `United States 
                Government contractor' means any person who is 
                performing services in a foreign country directly or 
                indirectly pursuant to a contract with the United 
                States.
                    ``(C) Employee.--For purposes of subparagraph (A), 
                the term `employee' includes an employee within the 
                meaning of section 401(c)(1).
                    ``(D) Combat zone.--For purposes of this paragraph, 
                the term `combat zone' has the meaning given such term 
                by section 112(c)(2).
                    ``(E) Application of paragraph.--This paragraph 
                shall apply to employees who leave the foreign country 
                referred to in paragraph (4)(A) after December 31, 
                2011.''.
    (b) Clerical Amendment.--The heading for paragraph (4) of section 
911(d) of such Code is amended by inserting ``on account of war, civil 
unrest, etc'' after ``foreign country''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 2011.
                                 <all>