To amend title 37, United States Code, to ensure that a member of the Armed Forces who is wounded or otherwise injured while serving in a combat zone will continue to receive certain special pays and allowances associated with such service, and will continue to receive the benefit of the combat zone tax exclusion associated with the pay and allowances of the member, while the member recovers from the wound or injury, and for other purposes.

Summary: Crosby-Puller Combat Wounds Compensation Act - Continues hazardous duty pay, aviation career incentive pay, career enlisted flier incentive pay, hardship duty pay, imminent danger pay, the travel or transportation per diem for duty outside the United States or in Hawaii or Alaska, and the family separation allowance for members of the Armed Forces who are wounded or injured in combat zones and removed from the area for treatment until such time as the member: (1) is found physically fit to perform the duties of the member's office, grade, rank, or rating; (2) is discharged or separated; or (3) dies.

Amends the Internal Revenue Code of 1986 to repeal the time limitation on the income tax exclusion for combat zone compensation resulting from hospitalization due to wounds, disease, or injury incurred in such combat zone.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Crosby-Puller Combat Wounds 
Compensation Act''.

SEC. 2. CONTINUATION OF SPECIAL PAYS AND ALLOWANCES FOR MEMBERS OF THE 
              ARMED FORCES WOUNDED OR INJURED IN COMBAT ZONES.

    (a) Hazardous Duty Pay.--Section 301 of title 37, United States 
Code, is amended by adding at the end the following new subsection:
    ``(g) A member of the armed forces entitled to incentive pay under 
this section who is wounded or otherwise injured while assigned to duty 
in an area for which special pay under section 310 of this title is 
available and who is removed from the area for treatment of the wound 
or injury shall continue to be paid incentive pay under this section at 
the rate in effect for the member when the member received the wound or 
injury until the earliest of the following dates:
            ``(1) The date on which the member is found to be 
        physically fit to perform the duties of the member's office, 
        grade, rank, or rating.
            ``(2) The date on which the member is discharged or 
        separated from the armed forces.
            ``(3) The date on which the member dies.''.
    (b) Aviation Career Incentive Pay for Officers.--Section 301a of 
such title is amended by adding at the end the following new 
subsection:
    ``(g) An officer entitled to incentive pay under this section who 
is wounded or otherwise injured while assigned to duty in an area for 
which special pay under section 310 of this title is available and who 
is removed from the area for treatment of the wound or injury shall 
continue to be paid incentive pay under this section at the rate in 
effect for the officer when the officer received the wound or injury 
until the earliest of the following dates:
            ``(1) The date on which the officer is found to be 
        physically fit to perform the duties of the officer's office, 
        grade, rank, or rating.
            ``(2) The date on which the officer is discharged or 
        separated from the armed forces.
            ``(3) The date on which the officer dies.''.
    (c) Career Enlisted Flier Incentive Pay.--Section 320 of such title 
is amended--
            (1) by redesignating subsection (i) as subsection (j); and
            (2) by inserting after subsection (h) the following new 
        subsection (i):
    ``(i) Continuation When Wounded or Injured in Combat Zone.--A 
member entitled to incentive pay under this section who is wounded or 
otherwise injured while assigned to duty in an area for which special 
pay under section 310 of this title is available and who is removed 
from the area for treatment of the wound or injury shall continue to be 
paid incentive pay under this section at the rate in effect for the 
member when the member received the wound or injury until the earliest 
of the following dates:
            ``(1) The date on which the member is found to be 
        physically fit to perform the duties of the member's office, 
        grade, rank, or rating.
            ``(2) The date on which the member is discharged or 
        separated from the armed forces.
            ``(3) The date on which the member dies.''.
    (d) Hardship Duty Pay.--Section 305 of such title is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Continuation When Wounded or Injured in Combat Zone.--A 
member of the armed forces entitled to hardship duty pay under 
subsection (a) who is wounded or otherwise injured while assigned to 
duty in an area for which special pay under section 310 of this title 
is available and who is removed from the area for treatment of the 
wound or injury shall continue to be paid hardship duty pay under 
subsection (a) at the rate in effect for the member when the member 
received the wound or injury until the earliest of the following dates:
            ``(1) The date on which the member is found to be 
        physically fit to perform the duties of the member's office, 
        grade, rank, or rating.
            ``(2) The date on which the member is discharged or 
        separated from the armed forces.
            ``(3) The date on which the member dies.''.
    (e) Imminent Danger Pay.--Subsection (b) of section 310 of such 
title is amended to read as follows:
    ``(b) Continuation When Wounded or Injured in Combat Zone.--A 
member who is wounded or otherwise injured while assigned to duty in an 
area for which special pay is available under this section and who is 
removed from the area for treatment of the wound or injury shall 
continue to be paid such special pay at the rate in effect for the 
member when the member received the wound or injury until the earliest 
of the following dates:
            ``(1) The date on which the member is found to be 
        physically fit to perform the duties of the member's office, 
        grade, rank, or rating.
            ``(2) The date on which the member is discharged or 
        separated from the armed forces.
            ``(3) The date on which the member dies.''.
    (f) Travel and Transportation Per Diem.--Section 405 of such title 
is amended by adding at the end the following new subsection:
    ``(d) Continuation When Wounded or Injured in Combat Zone.--A 
member of the armed forces entitled to a per diem under this section 
who is wounded or otherwise injured while assigned to duty in an area 
for which special pay under section 310 of this title is available and 
who is removed from the area for treatment of the wound or injury shall 
continue to be paid such per diem at the rate in effect for the member 
when the member received the wound or injury until the earliest of the 
following dates:
            ``(1) The date on which the member is found to be 
        physically fit to perform the duties of the member's office, 
        grade, rank, or rating.
            ``(2) The date on which the member is discharged or 
        separated from the armed forces.
            ``(3) The date on which the member dies.''.
    (g) Family Separation Allowance.--Section 427 of such title is 
amended by adding at the end the following new subsection:
    ``(f) Continuation When Wounded or Injured in Combat Zone.--A 
member of the armed forces entitled to an allowance under subsection 
(a) who is wounded or otherwise injured while assigned to duty in an 
area for which special pay under section 310 of this title is available 
and who is removed from the area for treatment of the wound or injury 
shall continue to be paid the allowance at the rate in effect for the 
member when the member received the wound or injury until the earliest 
of the following dates:
            ``(1) The date on which the member is found to be 
        physically fit to perform the duties of the member's office, 
        grade, rank, or rating.
            ``(2) The date on which the member is discharged or 
        separated from the armed forces.
            ``(3) The date on which the member dies.''.

SEC. 3. REPEAL OF TIME LIMITATION ON EXCLUSION OF COMBAT ZONE 
              COMPENSATION BY REASON OF HOSPITALIZATION.

    (a) In General.--Subsections (a)(2) and (b)(2) of section 112 of 
the Internal Revenue Code of 1986 are each amended by striking ``; but 
this paragraph shall not apply for any month beginning more than 2 
years after the date of the termination of combatant activities in such 
zone''.
    (b) Effective Date.--The amendments made by this section shall 
apply to compensation received for months ending after the date of the 
enactment of this Act.