[Congressional Record Volume 149, Number 20 (Tuesday, February 4, 2003)]
[Senate]
[Pages S1907-S1908]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS (for himself, Ms. Cantwell, Mrs. Murray, Mrs. 
        Clinton, Mr. Harkin, Mr. Kohl, Mr. Warner, Mr. Allen, Mr. 
        Feingold, Mr. Schumer, and Mr. Grassley):
  S. 298. A bill to provide tax relief and assistance for the families 
of the heroes of the Space Shuttle Columbia, and for other purposes; to 
the Committee on Finance.
  Mr. BAUCUS. Mr. President, Saturday, February 1 was a sad day for 
America, and a sad day for the world. In the blink of an eye, we lost 
the cream of our astronaut corps when the Space Shuttle Columbia 
disintegrated upon re-entry into the Earth's atmosphere.
  Our Nation and the world mourns the loss of these heroes: Lt. Col. 
Michael P. Anderson, U.S. Navy Capt. David Brown, U.S. Navy Commander 
Laurel Clark, Dr. Kalpana Chawla, U.S. Air Force Col. Rick Husband, 
Naval Commander William McCool, and Israeli Air Force Colonel Ilan 
Ramon. The loved ones they left behind mourn the loss of fathers and 
mothers, sons and daughters, sisters, brothers, and friends.
  We have a duty to those who lost their lives for the advancement of 
science and increasing our knowledge of the world we live in: a duty 
first to find out what went wrong and make sure it never goes wrong 
again, a duty to take up where they left off and continue exploring the 
unknowns of the universe, and just as importantly, a duty to help take 
care of the loved ones they left behind.
  After the horrible day of terrorist attacks on September 11, 2001, 
Congress paid tribute to the lives lost in those attacks, and in the 
bombing in Oklahoma City and the anthrax attacks, by expanding certain 
tax benefits previously only available to soldiers who had been killed 
in combat zones. The benefits include income tax relief, an exclusion 
of death benefit payments, estate tax relief and a streamlining of the 
rules governing the distribution of funds by charitable organizations.
  I believe the families of the heroes of the Columbia Shuttle mission, 
and families of astronauts that may be lost in the future, deserve no 
less.
  Military or civilian employees of the U.S. who die as a result of 
terrorist or military activity outside the U.S., victims of the 
terrorist attacks of 9/11, of the Oklahoma City bombing and of the 
post-9/11 anthrax attacks, are generally exempt from income tax for the 
year of death and the year prior to death. For those that have little 
income tax liability, a minimum tax relief benefit of $10,000 is 
provided.
  Current law exempts from income tax certain death benefits paid by 
the U.S. government to soldiers killed in the line of duty. The law 
also generally excludes from income payments made by an employer to the 
families of the victims of the terrorist attack of 9/11, Oklahoma City 
and the anthrax attacks. The exclusion does not apply to amounts that 
would have been payable if the individual had died for a reason other 
than the attack.
  Current law also provides a reduction in Federal estate tax for 
soldiers who are killed in action while serving in a combat zone, or as 
a result of wounds, disease or injury suffered while serving in the 
combat zone. Comparable benefits are also provided to the victims of 9/
11, Oklahoma City and the anthrax attacks. The amount of benefit is 
equal to 125 percent of the 2001 State death tax credit amount, which 
effectively establishes a 20 percent estate tax bracket for those who 
qualify for this benefit.
  And finally, we have a streamlined process for the distribution of 
charitable donations to the families of the victims of 9/11, Oklahoma 
City and the anthrax attacks. The key element of this process allows 
organizations that make payments in good faith using a reasonable and 
objective formula which is consistently applied not to make a specific 
assessment of need prior to distributing funds so long as the payments 
serve a charitable class.
  My legislation, the Assistance for Families of Space Shuttle Heroes 
Act, makes all of the above benefits available to the families of the 
fallen Columbia crew, as well as to other astronauts that may be killed 
in the line of duty in future years.
  The seven members of the Columbia crew were true heroes. They are 
deeply missed by their family and friends. Through their dedication to 
space exploration, they lived their lives to the fullest and made long-
lasting contributions to the nation and to the world. Tax relief will 
never fill the hole that has been left in the lives and hearts of their 
families by Saturday's explosion.
  But astronauts have trouble obtaining private life insurance policies 
given

[[Page S1908]]

the high-risk nature of their jobs, so their families face an uncertain 
future even as they mourn the loss of loved ones that will never be 
replaced. This legislation is especially critical for their future. It 
is one small step we can make as Americans to help these families get 
through these dark days, and the challenges they will face in the years 
to come.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 298

       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 ``Assistance for Families of 
     Space Shuttle Columbia Heroes Act''.

     SEC. 2. TAX RELIEF AND ASSISTANCE FOR FAMILIES OF SPACE 
                   SHUTTLE COLUMBIA HEROES.

       (a) Income Tax Relief.--
       (1) In general.--Subsection (d) of section 692 of the 
     Internal Revenue Code of 1986 (relating to income taxes of 
     members of Armed Forces and victims of certain terrorist 
     attacks on death) is amended by adding at the end the 
     following new paragraph:
       ``(5) Relief with respect to astronauts.--The provisions of 
     this subsection shall apply to any astronaut whose death 
     occurs in the line of duty, except that paragraph (3)(B) 
     shall be applied by using the date of the death of the 
     astronaut rather than September 11, 2001.''.
       (2) Conforming amendments.--
       (A) Section 5(b)(1) of such Code is amended by inserting 
     ``, astronauts,'' after ``Forces''.
       (B) Section 6013(f)(2)(B) of such Code is amended by 
     inserting ``, astronauts,'' after ``Forces''.
       (3) Clerical amendments.--
       (A) The heading of section 692 of such Code is amended by 
     inserting ``, ASTRONAUTS,'' after ``FORCES''.
       (B) The item relating to section 692 in the table of 
     sections for part II of subchapter J of chapter 1 of such 
     Code is amended by inserting ``, astronauts,'' after 
     ``Forces''.
       (4) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2002.
       (b) Death Benefit Relief.--
       (1) In general.--Subsection (i) of section 101 of the 
     Internal Revenue Code of 1986 (relating to certain death 
     benefits) is amended by adding at the end the following new 
     paragraph:
       ``(4) Relief with respect to astronauts.--The provisions of 
     this subsection shall apply to any astronaut whose death 
     occurs in the line of duty.''.
       (2) Clerical amendment.--The heading for subsection (i) of 
     section 101 of such Code is amended by inserting ``or 
     Astronauts'' after ``Victims''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to amounts paid after December 31, 2002, with 
     respect to deaths occurring after such date.
       (c) Estate Tax Relief.--
       (1) In general.--Section 2201(b) of the Internal Revenue 
     Code of 1986 (defining qualified decedent) is amended by 
     striking ``and'' at the end of paragraph (1)(B), by striking 
     the period at the end of paragraph (2) and inserting ``, 
     and'', and by adding at the end the following new paragraph:
       ``(3) any astronaut whose death occurs in the line of 
     duty.''.
       (2) Clerical amendments.--
       (A) The heading of section 2201 of such Code is amended by 
     inserting ``, DEATHS OF ASTRONAUTS,'' after ``FORCES''.
       (B) The item relating to section 2201 in the table of 
     sections for subchapter C of chapter 11 of such Code is 
     amended by inserting ``, deaths of astronauts,'' after 
     ``Forces''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to estates of decedents dying after December 31, 
     2002.
       (d) Payments by Charitable Organizations.--
       (1) In general.--For purposes of the Internal Revenue Code 
     of 1986--
       (A) payments made by an organization described in section 
     501(c)(3) of such Code by reason of the death of an astronaut 
     occurring in the line of duty after December 31, 2002, shall 
     be treated as related to the purpose or function constituting 
     the basis for such organization's exemption under section 501 
     of such Code if such payments are made in good faith using a 
     reasonable and objective formula which is consistently 
     applied; and
       (B) in the case of a private foundation (as defined in 
     section 509 of such Code), any payment described in paragraph 
     (1) shall not be treated as made to a disqualified person for 
     purposes of section 4941 of such Code.
       (2) Effective date.--This subsection shall apply to 
     payments made after December 31, 2002.
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