[Congressional Record Volume 149, Number 169 (Thursday, November 20, 2003)]
[Senate]
[Pages S15288-S15289]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. COLEMAN:
  S. 1898. A bill to amend the Internal Revenue Code of 1986 to allow 
tax-payers to designate part or all of any income tax refund to support 
reservists and National Guard members; to the Committee on Finance.
  Mr. COLEMAN. Mr. President, I ask unanimous consent that the bill I 
introduce today--the Voluntary Support for Reservists and National 
Guard Members Act, which creates a voluntary check-off on tax returns 
to support the income lost to reservists who are called to active 
duty--be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1898

       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 ``Voluntary Support for 
     Reservists and National Guard Members Act''.

     SEC. 2. DESIGNATION OF OVERPAYMENTS TO SUPPORT RESERVISTS.

       (a) Designation.--
       (1) In general.--Subchapter A of chapter 61 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new part:

      ``PART IX--DESIGNATION OF OVERPAYMENTS TO SUPPORT RESERVISTS

``Sec. 6097. Designation.

     ``SEC. 6097. DESIGNATION.

       ``(a) In General.--In the case of an individual, with 
     respect to each taxpayer's return for the taxable year of the 
     tax imposed by chapter 1, such taxpayer may designate that a 
     specified portion (not less than $1) of any overpayment of 
     tax for such taxable year be paid over to the Reservist 
     Income Differential Trust Fund.
       ``(b) Manner and Time of Designation.--A designation under 
     subsection (a) may be made with respect to any taxable year 
     only at the time of filing the return of the tax imposed by 
     chapter 1 for such taxable year. Such designation shall be 
     made in such manner as the Secretary prescribes by 
     regulations except that such designation shall be made either 
     on the first page of the return or on the page bearing the 
     taxpayer's signature.
       ``(c) Overpayments Treated as Refunded.--For purposes of 
     this title, any portion of an overpayment of tax designated 
     under subsection (a) shall be treated as--
       ``(1) being refunded to the taxpayer as of the last date 
     prescribed for filing the return of tax imposed by chapter 1 
     (determined without regard to extensions) or, if later, the 
     date the return is filed, and
       ``(2) a contribution made by such taxpayer on such date to 
     the United States.''.
       (2) Transfers to reservist income differential trust 
     fund.--The Secretary of the Treasury shall, from time to 
     time, transfer to the Reservist Income Differential Trust 
     Fund the amounts designated under section 6097 of the 
     Internal Revenue Code of 1986.
       (3) Clerical Amendment.--The table of parts for subchapter 
     A of chapter 61 of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new item:

``Part IX. Designation of overpayments to support reservists.''.

       (b) Reservist Income Differential Trust Fund.--
       (1) In General.--Subchapter A of chapter 98 of the Internal 
     Revenue Code of 1986 (relating to trust fund code) is amended 
     by adding at the end the following new section:

     ``SEC. 9511. RESERVIST INCOME DIFFERENTIAL TRUST FUND.

       ``(a) Establishment.--There is established in the Treasury 
     of the United States a trust fund to be known as the 
     `Reservist Income Differential Trust Fund', consisting of 
     such amounts as may be appropriated or credited to such Trust 
     Fund as provided in this section or section 9602(b).
       ``(b) Transfers to Trust Fund.--There are hereby 
     appropriated to the Reservist Income Differential Trust Fund 
     amounts equivalent to the amounts designated under section 
     6097 (relating to designation of overpayments to support 
     reservists).
       ``(c) Expenditures.--Amounts in the Reservist Income 
     Differential Trust Fund shall be available for making 
     distributions to eligible members of reserve components in 
     accordance with section 212 of title 37, United States 
     Code.''.
       (2) Clerical Amendment.--The table of sections for such 
     subchapter is amended by adding at the end the following new 
     item:

``Sec. 9511. Reservist Income Differential Trust Fund.''.

       (c) Effective Dates.--
       (1) Subsection (a).--The amendments made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2003.
       (2) Subsection (b).--The amendments made by subsection (b) 
     shall take effect on the date of the enactment of this Act.

     SEC. 3. PAY DIFFERENTIAL FOR MOBILIZED RESERVES.

       (a) Authority.--
       (1) In general.--Chapter 3 of title 37, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 212. Reserves on active duty: pay differential for 
       service in support of a contingency operation

       ``(a) Authority.--To the extent provided in appropriations 
     Acts, the Secretary of a military department shall pay an 
     eligible member of a reserve component of the armed forces a 
     pay differential computed under subsection (c).
       ``(b) Eligible Member.--A member of a reserve component is 
     eligible for a pay differential for each month during which 
     the member is serving on active duty for a period of more 
     than 30 days pursuant to a call or order to active duty under 
     a provision of law referred to in section 101(a)(13)(B) of 
     title 10.
       ``(c) Amount.--(1) Subject to paragraphs (2) and (3), the 
     amount of a pay differential paid under this section for a 
     month to a member called or ordered to active duty as 
     described in subsection (b) shall be equal to the excess of--
       ``(A) the monthly rate of the salary, wage, or similar form 
     of compensation that applied to the member in the member's 
     position of employment (if any) for the last full month 
     before the month in which the member either commenced the 
     period of active duty to which called or ordered or commenced 
     the performance of duties for the armed forces in another 
     duty status in preparation for the performance of the active 
     duty to which called or ordered, over
       ``(B) the monthly rate of basic pay payable to the member 
     under section 204 of this title for such month of active-duty 
     service.
       ``(2) The Secretary concerned may pay a member a pay 
     differential under this section for a month in an amount less 
     than the amount computed under paragraph (1) if the Secretary 
     concerned determines that it is necessary to do so on the 
     basis of the availability of funds for such purpose.
       ``(3) A member may not be paid more than a total of $25,000 
     under this section.
       ``(d) Funding.--(1) Pay differentials under this section 
     shall be paid out of funds that are transferred from the 
     Reservist Income Differential Trust Fund to military 
     personnel accounts for the purposes of this section.
       ``(2) The Secretary of Defense and the Secretary of the 
     Treasury shall jointly prescribe regulations providing for 
     transfers of funds in the Reservist Income Differential Trust 
     Fund to the appropriate military personnel accounts to make 
     payments under this section.
       ``(3) In this section, the term `Reservist Income 
     Differential Trust Fund' means the Reservist Income 
     Differential Trust Fund referred to in section 6097 of the 
     Internal Revenue Code.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is

[[Page S15289]]

     amended by adding at the end the following new item:

``212. Reserves on active duty: pay differential for service in support 
              of a contingency operation.''.

       (b) Effective Date.--Section 212 of title 37, United States 
     Code, shall take effect on October 1, 2004, and shall apply 
     with respect to months that begin on or after that date.
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