[House Report 108-149]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-149

======================================================================



 
 RELATING TO CONSIDERATION OF THE SENATE AMENDMENTS TO H.R. 1308, TAX 
             RELIEF, SIMPLIFICATION, AND EQUITY ACT OF 2003

                                _______
                                

   June 11, 2003.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

   Mr. Reynolds, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 270]

    The Committee on Rules, having had under consideration 
House Resolution 270, by a record vote of 9 to 4, report the 
same to the House with the recommendation that the resolution 
be adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for the disposition of the Senate 
amendments to H.R. 1308, the Tax Relief, Simplification, and 
Equity Act of 2003. The rule provides that upon adoption of the 
resolution the bill, H.R. 1308, with the Senate amendments 
thereto, be hereby taken from the Speaker's table.
    The rule provides that upon adoption of the resolution the 
Senate amendment to the title is hereby agreed to. The rule 
further provides that upon adoption of the resolution the 
Senate amendment to the text is hereby agreed to with the 
amendment printed in this report.
    Finally, section 2 of the resolution provides that it shall 
be in order for the chairman of the Committee on Ways and Means 
to move that the House insist on its amendment to the Senate 
amendment to H.R. 1308, or that the House disagree to any 
further Senate amendment, and request or agree to a conference 
with the Senate thereon.

                            COMMITTEE VOTES

    Pursuant to clause 3(b) of House rule XIII the results of 
each record vote on an amendment or motion to report, together 
with the names of those voting for and against, are printed 
below:

Rules Committee Record Vote No. 108

    Date: June 11, 2003.
    Measure: Relating to consideration of the Senate amendments 
to the bill H.R. 1308, Tax Relief, Simplification, and Equity 
Act of 2003.
    Motion by: Mr. Frost.
    Summary of motion: To make in order H.R. 2392.
    Results: Defeated 4 to 9.
    Vote by Members: Goss--Nay; Linder--Nay; Pryce--Nay; Diaz-
Balart--Nay; Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay; 
Reynolds--Nay; Frost--Yea; Slaughter--Yea; McGovern--Yea; 
Hastings (FL)--Yea; Dreier--Nay.

Rules Committee Record Vote No. 109

    Date: June 11, 2003.
    Measure: Relating to consideration of the Senate amendments 
to the bill H.R. 1308, Tax Relief, Simplification, and Equity 
Act of 2003.
    Motion by: Mr. Goss.
    Summary of motion: To report the resolution.
    Results: Agreed to 9 to 4.
    Vote by Members: Goss--Yea; Linder--Yea; Pryce--Yea; Diaz-
Balart--Yea; Hastings (WA)--Yea; Myrick--Yea; Sessions--Yea; 
Reynolds--Yea; Frost--Nay; Slaughter--Nay; McGovern--Nay; 
Hastings (FL)--Nay; Dreier--Yea.

                          SUMMARY OF AMENDMENT

    Thomas (CA):
    Increases the child credit to $1,000 per eligible child 
through 2010. The $1,000 child credit is scheduled to sunset in 
2005. It will gradually increase back to $1,000 by 2010. 
Ensures that the child credit stays at the $1,000 level through 
2010.
    Eliminates the marriage penalty in the child credit. The 
phase-out thresholds of the child credit create a marriage 
penalty for married couples with incomes over $110,000. 
Millions of children are denied the child credit because of 
this penalty. Eliminates the marriage penalty by raising the 
phase-out threshold for married couples to $150,000.
    Accelerates the increase in the refundable child credit. 
Under present law, the child credit is refundable by an amount 
equal to 10% of earned income in excess of $10,500. The 10% 
rate is scheduled to increase to 15% in 2005. The amendment 
accelerates this increase so that the 15% rate takes effect in 
2003 instead of 2005.
    Provides tax relief and enhances tax fairness for Members 
of the Armed Forces. The amendment includes the military tax 
relief provisions that have passed the House and are awaiting 
action in the Senate. These provisions include capital gains 
tax relief on home sales, tax-free death gratuity payments, and 
tax-free dependent care assistance for members of the military.
    Suspends the tax-exempt status of designated terrorist 
organizations. The amendment provides that the tax-exempt 
status of an organization is automatically suspended during any 
period in which the organization is designated as a terrorist 
organization or is listed in or designated by an Executive 
Order as supporting terrorism.
    Provides tax relief for astronauts who die on space 
missions. The amendment extends the income and estate tax 
relief provisions of the ``Victims of Terrorism Tax Relief Act 
of 2002'' to astronauts who lose their lives in a space shuttle 
mission, including those who lost their lives in the space 
shuttle Columbia disaster.

                           TEXT OF AMENDMENT

  In lieu of the matter proposed to be inserted by the 
amendment of the Senate to the text of the bill, insert the 
following:

SECTION 1. SHORT TITLE, ETC.

  (a) Short Title.--This Act may be cited as the ``All-American 
Tax Relief Act of 2003''.
  (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a section 
or other provision, the reference shall be considered to be 
made to a section or other provision of the Internal Revenue 
Code of 1986.
  (c) Table of Contents.--

Sec. 1. Short title, etc.

                        TITLE I--CHILD TAX CREDIT

Sec. 101. Expansion of child tax credit.

                   TITLE II--ARMED FORCES TAX FAIRNESS

Sec. 201. Special rule for members of uniformed services and Foreign 
          Service in determining exclusion of gain from sale of 
          principal residence.
Sec. 202. Restoration of full exclusion from gross income of death 
          gratuity payment.
Sec. 203. Exclusion for amounts received under Department of Defense 
          homeowners assistance program.
Sec. 204. Expansion of combat zone filing rules to contingency 
          operations.
Sec. 205. Modification of membership requirement for exemption from tax 
          for certain veterans' organizations.
Sec. 206. Clarification of the treatment of certain dependent care 
          assistance programs.
Sec. 207. Clarification relating to exception from additional tax on 
          certain distributions from qualified tuition programs, etc., 
          on account of attendance at military academy.
Sec. 208. Above-the-line deduction for overnight travel expenses of 
          National Guard and Reserve members.

  TITLE III--SUSPENSION OF TAX-EXEMPT STATUS OF TERRORIST ORGANIZATIONS

Sec. 301. Suspension of tax-exempt status of terrorist organizations.

                     TITLE IV--RELIEF FOR ASTRONAUTS

Sec. 401. Tax relief and assistance for families of astronauts who lose 
          their lives on a space mission.

                       TITLE I--CHILD TAX CREDIT

SEC. 101. EXPANSION OF CHILD TAX CREDIT.

  (a) Credit Refundability.--Clause (i) of section 24(d)(1)(B) 
(relating to portion of credit refundable) is amended by 
striking ``(10 percent in the case of taxable years beginning 
before January 1, 2005)''.
  (b) Increase in Credit Through 2010.--Subsection (a) of 
section 24 (relating to child tax credit) is amended to read as 
follows:
  ``(a) Allowance of Credit.--There shall be allowed as a 
credit against the tax imposed by this chapter for the taxable 
year with respect to each qualifying child of the taxpayer an 
amount equal to $1,000.''.
  (c) Removal of Marriage Penalty in Phaseout Thresholds.--
Paragraph (2) of section 24(b) is amended to read as follows:
          ``(2) Threshold amount.--For purposes of paragraph 
        (1), the term `threshold amount' means $75,000 
        ($150,000 in the case of a joint return).''.
  (d) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2002.
  (e) Application of EGTRRA Sunset.--Each amendment made by 
this section shall be subject to title IX of the Economic 
Growth and Tax Relief Reconciliation Act of 2001 to the same 
extent and in the same manner as section 201 of such Act.

                  TITLE II--ARMED FORCES TAX FAIRNESS

SEC. 201. SPECIAL RULE FOR MEMBERS OF UNIFORMED SERVICES AND FOREIGN 
                    SERVICE IN DETERMINING EXCLUSION OF GAIN FROM SALE 
                    OF PRINCIPAL RESIDENCE.

  (a) In General.--Subsection (d) of section 121 (relating to 
exclusion of gain from sale of principal residence) is amended 
by adding at the end the following new paragraph:
          ``(10) Members of uniformed services and foreign 
        service.--
                  ``(A) In general.--At the election of an 
                individual with respect to a property, the 
                running of the 5-year period referred to in 
                subsections (a) and (c)(1)(B) and paragraph (7) 
                of this subsection with respect to such 
                property shall be suspended during any period 
                that such individual or such individual's 
                spouse is serving on qualified official 
                extended duty as a member of the uniformed 
                services or as a member of the Foreign Service.
                  ``(B) Maximum period of suspension.--Such 5-
                year period shall not be extended more than 5 
                years by reason of subparagraph (A).
                  ``(C) Qualified official extended duty.--For 
                purposes of this paragraph--
                          ``(i) In general.--The term 
                        `qualified official extended duty' 
                        means any extended duty while serving 
                        at a duty station which is at least 150 
                        miles from such property or while 
                        residing under Government orders in 
                        Government quarters.
                          ``(ii) Uniformed services.--The term 
                        `uniformed services' has the meaning 
                        given such term by section 101(a)(5) of 
                        title 10, United States Code, as in 
                        effect on the date of the enactment of 
                        this paragraph.
                          ``(iii) Foreign service.--The term 
                        `member of the Foreign Service' has the 
                        meaning given the term `member of the 
                        Service' by paragraph (1), (2), (3), 
                        (4), or (5) of section 103 of the 
                        Foreign Service Act of 1980, as in 
                        effect on the date of the enactment of 
                        this paragraph.
                          ``(iv) Extended duty.--The term 
                        `extended duty' means any period of 
                        active duty pursuant to a call or order 
                        to such duty for a period in excess of 
                        180 days or for an indefinite period.
                  ``(D) Special rules relating to election.--
                          ``(i) Election limited to 1 property 
                        at a time.--An election under 
                        subparagraph (A) with respect to any 
                        property may not be made if such an 
                        election is in effect with respect to 
                        any other property.
                          ``(ii) Revocation of election.--An 
                        election under subparagraph (A) may be 
                        revoked at any time.''.
  (b) Effective Date; Special Rule.--
          (1) Effective date.--The amendment made by this 
        section shall take effect as if included in the 
        amendments made by section 312 of the Taxpayer Relief 
        Act of 1997.
          (2) Waiver of limitations.--If refund or credit of 
        any overpayment of tax resulting from the amendment 
        made by this section is prevented at any time before 
        the close of the 1-year period beginning on the date of 
        the enactment of this Act by the operation of any law 
        or rule of law (including res judicata), such refund or 
        credit may nevertheless be made or allowed if claim 
        therefor is filed before the close of such period.

SEC. 202. RESTORATION OF FULL EXCLUSION FROM GROSS INCOME OF DEATH 
                    GRATUITY PAYMENT.

  (a) In General.--Paragraph (3) of section 134(b) (relating to 
qualified military benefit) is amended by adding at the end the 
following new subparagraph:
                  ``(C) Exception for death gratuity 
                adjustments made by law.--Subparagraph (A) 
                shall not apply to any adjustment to the amount 
                of death gratuity payable under chapter 75 of 
                title 10, United States Code, which is pursuant 
                to a provision of law enacted before December 
                31, 1991.''.
  (b) Conforming Amendment.--Section 134(b)(3)(A) is amended by 
striking ``subparagraph (B)'' and inserting ``subparagraphs (B) 
and (C)''.
  (c) Effective Date.--The amendments made by this section 
shall apply with respect to deaths occurring after September 
10, 2001.

SEC. 203. EXCLUSION FOR AMOUNTS RECEIVED UNDER DEPARTMENT OF DEFENSE 
                    HOMEOWNERS ASSISTANCE PROGRAM.

  (a) In General.--Subsection (a) of section 132 (relating to 
certain fringe benefits) is amended by striking ``or'' at the 
end of paragraph (6), by striking the period at the end of 
paragraph (7) and inserting ``, or'' and by adding at the end 
the following new paragraph:
          ``(8) qualified military base realignment and closure 
        fringe.''.
  (b) Qualified Military Base Realignment and Closure Fringe.--
Section 132 is amended by redesignating subsection (n) as 
subsection (o) and by inserting after subsection (m) the 
following new subsection:
  ``(n) Qualified Military Base Realignment and Closure 
Fringe.--
          ``(1) In general.--For purposes of this section, the 
        term `qualified military base realignment and closure 
        fringe' means 1 or more payments under the authority of 
        section 1013 of the Demonstration Cities and 
        Metropolitan Development Act of 1966 (42 U.S.C. 3374) 
        (as in effect on the date of the enactment of this 
        subsection).
          ``(2) Limitation.--With respect to any property, such 
        term shall not include any payment referred to in 
        paragraph (1) to the extent that the sum of all such 
        payments related to such property exceeds the amount 
        described in clause (1) of subsection (c) of such 
        section (as in effect on such date).''.
  (c) Effective Date.--The amendments made by this section 
shall apply to payments made after the date of the enactment of 
this Act.

SEC. 204. EXPANSION OF COMBAT ZONE FILING RULES TO CONTINGENCY 
                    OPERATIONS.

  (a) In General.--Subsection (a) of section 7508 (relating to 
time for performing certain acts postponed by reason of service 
in combat zone) is amended--
          (1) by inserting ``or when deployed outside the 
        United States away from the individual's permanent duty 
        station while participating in an operation designated 
        by the Secretary of Defense as a contingency operation 
        (as defined in section 101(a)(13) of title 10, United 
        States Code) or which became such a contingency 
        operation by operation of law'' after ``section 112'',
          (2) by inserting in the first sentence ``or at any 
        time during the period of such contingency operation'' 
        after ``for purposes of such section'',
          (3) by inserting ``or operation'' after ``such an 
        area'', and
          (4) by inserting ``or operation'' after ``such 
        area''.
  (b) Conforming Amendments.--
          (1) Section 7508(d) is amended by inserting ``or 
        contingency operation'' after ``area''.
          (2) The heading for section 7508 is amended by 
        inserting ``OR CONTINGENCY OPERATION'' after ``COMBAT 
        ZONE''.
          (3) The item relating to section 7508 in the table of 
        sections for chapter 77 is amended by inserting ``or 
        contingency operation'' after ``combat zone''.
  (c) Effective Date.--The amendments made by this section 
shall apply to any period for performing an act which has not 
expired before the date of the enactment of this Act.

SEC. 205. MODIFICATION OF MEMBERSHIP REQUIREMENT FOR EXEMPTION FROM TAX 
                    FOR CERTAIN VETERANS' ORGANIZATIONS.

  (a) In General.--Subparagraph (B) of section 501(c)(19) 
(relating to list of exempt organizations) is amended by 
striking ``or widowers'' and inserting ``, widowers, ancestors, 
or lineal descendants''.
  (b) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after the date of the 
enactment of this Act.

SEC. 206. CLARIFICATION OF THE TREATMENT OF CERTAIN DEPENDENT CARE 
                    ASSISTANCE PROGRAMS.

  (a) In General.--Subsection (b) of section 134 (defining 
qualified military benefit) is amended by adding at the end the 
following new paragraph:
          ``(4) Clarification of certain benefits.--For 
        purposes of paragraph (1), such term includes any 
        dependent care assistance program (as in effect on the 
        date of the enactment of this paragraph) for any 
        individual described in paragraph (1)(A).''.
  (b) Conforming Amendments.--
          (1) Section 134(b)(3)(A) (as amended by section 202) 
        is further amended by inserting ``and paragraph (4)'' 
        after ``subparagraphs (B) and (C)''.
          (2) Section 3121(a)(18) is amended by striking ``or 
        129'' and inserting ``, 129, or 134(b)(4)''.
          (3) Section 3306(b)(13) is amended by striking ``or 
        129'' and inserting ``, 129, or 134(b)(4)''.
          (4) Section 3401(a)(18) is amended by striking ``or 
        129'' and inserting ``, 129, or 134(b)(4)''.
  (c) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2002.

SEC. 207. CLARIFICATION RELATING TO EXCEPTION FROM ADDITIONAL TAX ON 
                    CERTAIN DISTRIBUTIONS FROM QUALIFIED TUITION 
                    PROGRAMS, ETC., ON ACCOUNT OF ATTENDANCE AT 
                    MILITARY ACADEMY.

  (a) In General.--Subparagraph (B) of section 530(d)(4) 
(relating to exceptions from additional tax for distributions 
not used for educational purposes) is amended by striking 
``or'' at the end of clause (iii), by redesignating clause (iv) 
as clause (v), and by inserting after clause (iii) the 
following new clause:
                          ``(iv) made on account of the 
                        attendance of the designated 
                        beneficiary at the United States 
                        Military Academy, the United States 
                        Naval Academy, the United States Air 
                        Force Academy, the United States Coast 
                        Guard Academy, or the United States 
                        Merchant Marine Academy, to the extent 
                        that the amount of the payment or 
                        distribution does not exceed the costs 
                        of advanced education (as defined by 
                        section 2005(e)(3) of title 10, United 
                        States Code, as in effect on the date 
                        of the enactment of this section) 
                        attributable to such attendance, or''.
  (b) Effective Date.--The amendment made by this section shall 
take effect for taxable years beginning after December 31, 
2002.

SEC. 208. ABOVE-THE-LINE DEDUCTION FOR OVERNIGHT TRAVEL EXPENSES OF 
                    NATIONAL GUARD AND RESERVE MEMBERS.

  (a) Deduction Allowed.--Section 162 (relating to certain 
trade or business expenses) is amended by redesignating 
subsection (p) as subsection (q) and inserting after subsection 
(o) the following new subsection:
  ``(p) Treatment of Expenses of Members of Reserve Component 
of Armed Forces of the United States.--For purposes of 
subsection (a)(2), in the case of an individual who performs 
services as a member of a reserve component of the Armed Forces 
of the United States at any time during the taxable year, such 
individual shall be deemed to be away from home in the pursuit 
of a trade or business for any period during which such 
individual is away from home in connection with such 
services.''.
  (b) Deduction Allowed Whether or Not Taxpayer Elects To 
Itemize.--Paragraph (2) of section 62(a) (relating to certain 
trade and business deductions of employees) is amended by 
adding at the end the following new subparagraph:
                  ``(E) Certain expenses of members of reserve 
                components of the armed forces of the united 
                states.--The deductions allowed by section 162 
                which consist of expenses, not in excess of 
                $1,500, paid or incurred by the taxpayer in 
                connection with the performance of services by 
                such taxpayer as a member of a reserve 
                component of the Armed Forces of the United 
                States for any period during which such 
                individual is more than 100 miles away from 
                home in connection with such services.''.
  (c) Effective Date.--The amendments made by this section 
shall apply to amounts paid or incurred in taxable years 
beginning after December 31, 2002.

 TITLE III--SUSPENSION OF TAX-EXEMPT STATUS OF TERRORIST ORGANIZATIONS

SEC. 301. SUSPENSION OF TAX-EXEMPT STATUS OF TERRORIST ORGANIZATIONS.

  (a) In General.--Section 501 (relating to exemption from tax 
on corporations, certain trusts, etc.) is amended by 
redesignating subsection (p) as subsection (q) and by inserting 
after subsection (o) the following new subsection:
  ``(p) Suspension of Tax-Exempt Status of Terrorist 
Organizations.--
          ``(1) In general.--The exemption from tax under 
        subsection (a) with respect to any organization 
        described in paragraph (2), and the eligibility of any 
        organization described in paragraph (2) to apply for 
        recognition of exemption under subsection (a), shall be 
        suspended during the period described in paragraph (3).
          ``(2) Terrorist organizations.--An organization is 
        described in this paragraph if such organization is 
        designated or otherwise individually identified--
                  ``(A) under section 212(a)(3)(B)(vi)(II) or 
                219 of the Immigration and Nationality Act as a 
                terrorist organization or foreign terrorist 
                organization,
                  ``(B) in or pursuant to an Executive order 
                which is related to terrorism and issued under 
                the authority of the International Emergency 
                Economic Powers Act or section 5 of the United 
                Nations Participation Act of 1945 for the 
                purpose of imposing on such organization an 
                economic or other sanction, or
                  ``(C) in or pursuant to an Executive order 
                issued under the authority of any Federal law 
                if--
                          ``(i) the organization is designated 
                        or otherwise individually identified in 
                        or pursuant to such Executive order as 
                        supporting or engaging in terrorist 
                        activity (as defined in section 
                        212(a)(3)(B) of the Immigration and 
                        Nationality Act) or supporting 
                        terrorism (as defined in section 
                        140(d)(2) of the Foreign Relations 
                        Authorization Act, Fiscal Years 1988 
                        and 1989); and
                          ``(ii) such Executive order refers to 
                        this subsection.
          ``(3) Period of suspension.--With respect to any 
        organization described in paragraph (2), the period of 
        suspension--
                  ``(A) begins on the later of--
                          ``(i) the date of the first 
                        publication of a designation or 
                        identification described in paragraph 
                        (2) with respect to such organization, 
                        or
                          ``(ii) the date of the enactment of 
                        this subsection, and
                  ``(B) ends on the first date that all 
                designations and identifications described in 
                paragraph (2) with respect to such organization 
                are rescinded pursuant to the law or Executive 
                order under which such designation or 
                identification was made.
          ``(4) Denial of deduction.--No deduction shall be 
        allowed under section 170, 545(b)(2), 556(b)(2), 
        642(c), 2055, 2106(a)(2), or 2522 for any contribution 
        to an organization described in paragraph (2) during 
        the period described in paragraph (3).
          ``(5) Denial of administrative or judicial challenge 
        of suspension or denial of deduction.--Notwithstanding 
        section 7428 or any other provision of law, no 
        organization or other person may challenge a suspension 
        under paragraph (1), a designation or identification 
        described in paragraph (2), the period of suspension 
        described in paragraph (3), or a denial of a deduction 
        under paragraph (4) in any administrative or judicial 
        proceeding relating to the Federal tax liability of 
        such organization or other person.
          ``(6) Erroneous designation.--
                  ``(A) In general.--If--
                          ``(i) the tax exemption of any 
                        organization described in paragraph (2) 
                        is suspended under paragraph (1),
                          ``(ii) each designation and 
                        identification described in paragraph 
                        (2) which has been made with respect to 
                        such organization is determined to be 
                        erroneous pursuant to the law or 
                        Executive order under which such 
                        designation or identification was made, 
                        and
                          ``(iii) the erroneous designations 
                        and identifications result in an 
                        overpayment of income tax for any 
                        taxable year by such organization,
                credit or refund (with interest) with respect 
                to such overpayment shall be made.
                  ``(B) Waiver of limitations.--If the credit 
                or refund of any overpayment of tax described 
                in subparagraph (A)(iii) is prevented at any 
                time by the operation of any law or rule of law 
                (including res judicata), such credit or refund 
                may nevertheless be allowed or made if the 
                claim therefor is filed before the close of the 
                1-year period beginning on the date of the last 
                determination described in subparagraph 
                (A)(ii).
          ``(7) Notice of Suspensions.--If the tax exemption of 
        any organization is suspended under this subsection, 
        the Internal Revenue Service shall update the listings 
        of tax-exempt organizations and shall publish 
        appropriate notice to taxpayers of such suspension and 
        of the fact that contributions to such organization are 
        not deductible during the period of such suspension.''.
  (b) Effective Date.--The amendments made by this section 
shall apply to designations made before, on, or after the date 
of the enactment of this Act.

                    TITLE IV--RELIEF FOR ASTRONAUTS

SEC. 401. TAX RELIEF AND ASSISTANCE FOR FAMILIES OF ASTRONAUTS WHO LOSE 
                    THEIR LIVES ON A SPACE MISSION.

  (a) Income Tax Relief.--
          (1) In general.--Subsection (d) of section 692 
        (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 while on a space mission, 
        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) is amended by inserting 
                ``, astronauts,'' after ``Forces''.
                  (B) Section 6013(f)(2)(B) is amended by 
                inserting ``, astronauts,'' after ``Forces''.
          (3) Clerical amendments.--
                  (A) The heading of section 692 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 is amended by inserting ``, 
                astronauts,'' after ``Forces''.
          (4) Effective date.--The amendments made by this 
        subsection shall apply with respect to any astronaut 
        whose death occurs after December 31, 2002.
  (b) Death Benefit Relief.--
          (1) In general.--Subsection (i) of section 101 
        (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 while on a space 
        mission.''.
          (2) Clerical amendment.--The heading for subsection 
        (i) of section 101 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.--Subsection (b) of section 2201 
        (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 while on a 
        space mission.''.
          (2) Clerical amendments.--
                  (A) The heading of section 2201 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 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.
  In lieu of the matter inserted by the Senate to the long 
title of the bill, insert the following: ``An Act to amend the 
Internal Revenue Code of 1986 to enhance fairness in the 
internal revenue laws, and for other purposes.''.

                                
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