I 

108TH CONGRESS 

1ST SESSION H. R. 2103

To amend the Internal Revenue Code of 1986 to exclude from gross income 

the value of certain real property tax reduction vouchers received by 

senior citizens who provide volunteer services under a State program. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 14, 2003

Mr. NEAL of Massachusetts (for himself, Mr. CAPUANO, Mr. DELAHUNT, Mr. 

FRANK of Massachusetts, and Mr. MARKEY) introduced the following bill; 

which was referred to the Committee on Ways and Means 

A BILL

To amend the Internal Revenue Code of 1986 to exclude 

from gross income the value of certain real property 

tax reduction vouchers received by senior citizens who 

provide volunteer services under a State program.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. EXCLUSION FROM GROSS INCOME FOR CER2 TAIN REAL PROPERTY TAX REDUCTION 

3 VOUCHERS RECEIVED BY SENIOR CITIZENS 

4 WHO PROVIDE VOLUNTEER SERVICES UNDER 

5 A STATE PROGRAM. 

6 (a) IN GENERAL.—Part III of subchapter B of chap7 ter 1 of the Internal Revenue Code of 1986 (relating to 

8 items specifically excluded from gross income) is amended 

9 by inserting after section 139 the following new section: 

10 ‘‘SEC. 139A. REAL PROPERTY TAX REDUCTION VOUCHERS 

11 RECEIVED BY SENIOR CITIZENS WHO PRO12 VIDE VOLUNTEER SERVICES UNDER A STATE 

13 PROGRAM. 

14 ‘‘(a) EXCLUSION.—In the case of an individual who 

15 has attained age 65, gross income shall not include the 

16 value of any real property tax reduction voucher received 

17 during the taxable year for services performed by such in18 dividual. 

19 ‘‘(b) MAXIMUM EXCLUSION.—The amount excluded 

20 from gross income under subsection (a) for the taxable 

21 year by each individual receiving a real property tax reduc22 tion voucher shall not exceed $500. 

23 ‘‘(c) REAL PROPERTY TAX REDUCTION VOUCHER.—

24 For purposes of this section, the term ‘real property tax 

25 reduction voucher’ means any voucher—
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1 ‘‘(1) which is issued by a governmental unit as 

2 part of a program under which individuals who have 

3 attained age 65 perform volunteer services for the 

4 benefit of such governmental unit in exchange for 

5 such voucher, and 

6 ‘‘(2) which may be used by such individuals 

7 only toward satisfying their liability for real property 

8 taxes imposed by such governmental unit. 

9 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No deduction 

10 shall be allowed under this chapter for any real property 

11 tax paid using any real property tax reduction voucher to 

12 the extent that the amount of such voucher is excluded 

13 from gross income under this section.’’

14 (b) EXEMPTION FROM EMPLOYMENT TAXES.—

15 (1) SOCIAL SECURITY TAXES.—

16 (A) Paragraph (20) of section 3121(a) of 

17 such Code is amended by striking ‘‘or 132’’ and 

18 inserting ‘‘132, or 139A’’. 

19 (B) Paragraph (17) of section 209(a) of 

20 the Social Security Act is amended by striking 

21 ‘‘or 132’’ and inserting ‘‘132, or 139A’’. 

22 (2) UNEMPLOYMENT COMPENSATION TAX.—

23 Paragraph (16) of section 3306(b) of such Code is 

24 amended by striking ‘‘or 132’’ and inserting ‘‘132, 

25 or 139A’’. 
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1 (3) WAGE WITHHOLDING.—Paragraph (19) of 

2 section 3401(a) of such Code is amended by striking 

3 ‘‘or 132’’ and inserting ‘‘132, or 139A’’. 

4 (c) CLERICAL AMENDMENT.—The table of sections 

5 for part III of subchapter B of chapter 1 of such Code 

6 is amended by inserting after the item relating to section 

7 139 the following new item:

‘‘Sec. 139A. Real property tax reduction vouchers received by senior citizens who provide volunteer services under a 

State program.’’

8 (d) EFFECTIVE DATES.—

9 (1) IN GENERAL.—Except as provided in para10 graph (2), the amendments made by this section 

11 shall apply to taxable years beginning after Decem12 ber 31, 2003. 

13 (2) EMPLOYMENT TAXES.—The amendments 

14 made by subsection (b) shall apply to remuneration 

15 paid after December 31, 2003.

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