[Congressional Record Volume 152, Number 106 (Thursday, August 3, 2006)]
[Senate]
[Page S8845]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. MENENDEZ:
  S. 3826. A bill to amend the Internal Revenue Code of 1986 to exclude 
from gross income military pay received by a member of a reserve 
component of the Armed Forces of the United States who is called to 
active duty; to the Committee on Finance.
  Mr. MENENDEZ. Mr. President, over the past few decades, our country 
has seen a major shift in the way that our Reserve component has been 
used. Traditionally, National guardsmen and reservists have 
supplemented our active-duty troops at times of a major war or 
conflict. But as America faces ever-increasing military challenges, we 
see these forces now replacing active duty troops in operations around 
the world.
  Since September 11, a large number of our Reserve component has been 
called to active duty, and it is expected to remain that way for the 
foreseeable future. Our Nation not only relies on the National Guard 
during times of war, but during crises and disasters within our 
borders. In my home State of New Jersey, we have witnessed the critical 
role the Guard plays in supporting our first responders and assisting 
with domestic emergencies. The Guard immediately responded to the 9/11 
attacks, provided relief in the aftermath of the hurricanes on the gulf 
coast, and aided New Jerseyans after the flooding in our State.
  As our Nation continues to rely on the efforts of National Guard 
members and reservists, it is imperative that we provide them and their 
families the support they need at home. Unfortunately, many married 
Guard members and reservists on active duty lose their income from 
their civilian jobs when they are activated. It is unconscionable that 
we would make these soldiers choose between their duty to our country 
and the financial security of their families.
  That is why I am introducing the Citizen Soldier Relief Act, which 
would exempt from taxation incomes earned by members of the Reserve 
component that are called to duty outside the traditional 1 weekend per 
month and 2 weeks per year. My bill would address a current void that 
exists in tax relief for our National Guard members and reservists who 
serve in noncombat-related capacities.
  By providing tax relief for these hard-working men and women, we can 
show them that our Nation appreciates their service and their 
sacrifice. I ask my colleagues to support this important legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3826

       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 ``Citizen Soldier Relief Act 
     of 2006''.

     SEC. 2. EXCLUSION FROM GROSS INCOME FOR MILITARY PAY RECEIVED 
                   BY A MEMBER OF A RESERVE COMPONENT OF THE ARMED 
                   FORCES OF THE UNITED STATES CALLED TO ACTIVE 
                   DUTY.

       (a) In General.--Section 112 of the Internal Revenue Code 
     of 1986 (relating to certain combat zone compensation of 
     members of the Armed Services) is amended by adding at the 
     end the following new subsection:
       ``(e) Reserve Components Called to Active Duty.--In the 
     case of an individual--
       ``(1) who is called or ordered to active duty in the Armed 
     Forces of the United States for a period in excess of 180 
     days or for an indefinite period, and
       ``(2) at the time so called or ordered is a member of a 
     reserve component of the Armed Forces of the United States,
     gross income shall not include military pay (as defined in 
     section 101(21) of title 37, United States Code) received by 
     such individual on account of such active duty service.''.
       (b) Conforming Amendments.--
       (1) The heading for section 112 of such Code is amended by 
     inserting before the period 
     ``; PAY OF MEMBERS OF RESERVE COMPONENTS OF SUCH ARMED FORCES 
     CALLED TO ACTIVE DUTY''.
       (2) The item relating to section 112 in the table of 
     sections for part III of subchapter B of chapter 1 of such 
     Code is amended by inserting before the period ``; pay of 
     members of reserve components of such Armed Forces called to 
     active duty''.
       (3) Section 3401(a)(1) of such Code is amended by inserting 
     ``; pay of members of reserve components of such Armed Forces 
     called to active duty'' after ``United States''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
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