Union Calendar No. 225

104TH CONGRESS

2D SESSION H. R. 2778

[Report No. 104–465]

A BILL

To provide that members of the Armed Forces perbat zone. ner as if such services were performed in a com- entitled to certain tax benefits in the same man- the Republic of Bosnia and Herzegovina shall be forming services for the peacekeeping effort in

FEBRUARY 29, 1996

Reported with amendments, committed to the Committee

dered to be printedof the Whole House on the State of the Union, and or-
IB

Union Calendar No. 225

104TH CONGRESS

2D SESSION H. R. 2778

[Report No. 104–465]

To provide that members of the Armed Forces performing services for the

peacekeeping effort in the Republic of Bosnia and Herzegovina shall

be entitled to certain tax benefits in the same manner as if such services

were performed in a combat zone.

IN THE HOUSE OF REPRESENTATIVES

DECEMBER 14, 1995

Mr. BUNNING of Kentucky introduced the following bill; which was referred

to the Committee on Ways and Means

FEBRUARY 29, 1996

Additional sponsors: Mr. DELAY, Mr. BOEHNER, Ms. MOLINARI, Mr. CRANE,

Mrs. JOHNSON of Connecticut, Mr. HOUGHTON, Mr. HERGER, Mr.

MCCRERY, Mr. HANCOCK, Mr. CAMP, Mr. SAM JOHNSON of Texas, Ms.

DUNN of Washington, Mr. COLLINS of Georgia, Mr. PORTMAN, Mr.

LAUGHLIN, Mr. ENGLISH of Pennsylvania, Mr. ENSIGN, Mr. DORNAN,

Mr. SPENCE, Mr. GILMAN, Mr. STUMP, Mr. GOODLING, Mr. BALLENGER,

Mr. CUNNINGHAM, Mr. BURTON of Indiana, Mr. BUYER, Mr. SCHIFF,

Mr. BAKER of California, Mr. STEARNS, Mr. BILIRAKIS, Mr.

ROHRABACHER, Mr. LEWIS of Kentucky, Mr. WHITFIELD, Mr. HEFLEY,

Mr. UPTON, Mr. HOSTETTLER, Mr. KING, Mr. METCALF, Mr. DUNCAN,

Mr. BOUCHER, Mr. WOLF, Mr. TRAFICANT, Mrs. MEEK of Florida, Mr.

ROGERS, Mr. EWING, Mrs. MEYERS of Kansas, Mr. GENE GREEN of

Texas, Mr. SOUDER, Mrs. KELLY, Mr. HUTCHINSON, Mr. UNDERWOOD,

Mr. KLECZKA, Mr. TATE, Mr. CALVERT, Mr. WATTS of Oklahoma, Mr.

KOLBE, Mr. DOOLITTLE, Mr. HAYES, Mr. JACOBS, Mr. PETERSON of

Florida, Mr. NEY, Mr. TAYLOR of North Carolina, Mr. LAHOOD, Mr.

LEWIS of California, Mr. JOHNSON of South Dakota, Mr. HYDE, Mr.

MCHUGH, Mr. LIVINGSTON, Mr. COBURN, Mr. CANADY of Florida, Mr.

FROST, Mr. RIGGS, Mr. GANSKE, Mr. ACKERMAN, Mr. JONES, Mr.

HORN, Mr. WELLER, Mr. FOX of Pennsylvania, Mr. BAESLER, Mr. NORWOOD, Mr. MCCOLLUM, Mr. FUNDERBURK, Mr. FALEOMAVAEGA, Mr.

BOEHLERT, Mr. MONTGOMERY, Mr. CONDIT, Mr. MCNULTY, Mr.
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•HR 2778 RH

CHABOT, Mr. CLEMENT, Mr. BURR, Mr. HAYWORTH, Mr. BUNN of Oregon, Mr. NETHERCUTT, Mr. WELDON of Florida, Ms. DELAURO, Mr.

HASTINGS of Florida, Mr. STUPAK, Mr. MARTINI, Mr. BATEMAN, Mr.

MCINTOSH, Mr. MCKEON, Mr. JEFFERSON, Mr. PETRI, Mr. WELDON of

Pennsylvania, Mr. GALLEGLY, Mr. SMITH of Texas, Mr. SHAYS, Mr.

GOSS, Mr. SKELTON, Mr. CHRYSLER, Mr. BAKER of Louisiana, Mr.

INGLIS of South Carolina, Mr. CARDIN, Mr. PASTOR, Mr. MANZULLO,

Mr. MCHALE, Mr. LEACH, Mr. WICKER, Mr. CHAMBLISS, Mr.

SCARBOROUGH, Mr. THOMAS, and Mr. FRELINGHUYSEN

FEBRUARY 29, 1996

Reported with amendments, committed to the Committee of the Whole House

on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on December 14, 1995]

A BILL

To provide that members of the Armed Forces performing

services for the peacekeeping effort in the Republic of

Bosnia and Herzegovina shall be entitled to certain tax

benefits in the same manner as if such services were

performed in a combat zone.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. TREATMENT OF CERTAIN INDIVIDUALS PER4 FORMING SERVICES IN CERTAIN HAZARDOUS

5 DUTY AREAS.

6 (a) GENERAL RULE.—For purposes of the following

7 provisions of the Internal Revenue Code of 1986, a qualified

8 hazardous duty area shall be treated in the same manner

9 as if it were a combat zone (as determined under section

10 112 of such Code):
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•HR 2778 RH

1 (1) Section 2(a)(3) (relating to special rule

2 where deceased spouse was in missing status).

3 (2) Section 112 (relating to the exclusion of cer4 tain combat pay of members of the Armed Forces).

5 (3) Section 692 (relating to income taxes of

6 members of Armed Forces on death).

7 (4) Section 2201 (relating to members of the

8 Armed Forces dying in combat zone or by reason of

9 combat-zone-incurred wounds, etc.).

10 (5) Section 3401(a)(1) (defining wages relating

11 to combat pay for members of the Armed Forces).

12 (6) Section 4253(d) (relating to the taxation of

13 phone service originating from a combat zone from

14 members of the Armed Forces).

15 (7) Section 6013(f)(1) (relating to joint return

16 where individual is in missing status).

17 (8) Section 7508 (relating to time for performing

18 certain acts postponed by reason of service in combat

19 zone).

20 (b) QUALIFIED HAZARDOUS DUTY AREA.—For pur21 poses of this section, the term ‘‘qualified hazardous duty

22 area’’ means Bosnia and Herzegovina, Croatia, or Macedo23 nia, if as of the date of the enactment of this section any

24 member of the Armed Forces of the United States is entitled

25 to special pay under section 310 of title 37, United States
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•HR 2778 RH

1 Code (relating to special pay; duty subject to hostile fire

2 or imminent danger) for services performed in such coun3 try. Such term includes any such country only during the

4 period such entitlement is in effect. Solely for purposes of

5 applying section 7508 of the Internal Revenue Code of 1986,

6 in the case of an individual who is performing services as

7 part of Operation Joint Endeavor outside the United States

8 while deployed away from such individual’s permanent

9 duty station, the term ‘‘qualified hazardous duty area’’ in10 cludes, during the period for which such entitlement is in

11 effect, any area in which such services are performed.

12 (c) EXCLUSION OF COMBAT PAY FROM WITHHOLDING

13 LIMITED TO AMOUNT EXCLUDABLE FROM GROSS IN14 COME.—Paragraph (1) of section 3401(a) of the Internal

15 Revenue Code of 1986 (defining wages) is amended by in16 serting before the semicolon the following: ‘‘to the extent re17 muneration for such service is excludable from gross income

18 under such section’’.

19 (d) INCREASE IN COMBAT PAY EXCLUSION FOR OFFI20 CERS TO HIGHEST AMOUNT APPLICABLE TO ENLISTED

21 PERSONNEL.—

22 (1) IN GENERAL.—Subsection (b) of section 112

23 of such Code (relating to commissioned officers) is

24 amended by striking ‘‘$500’’ and inserting ‘‘the maxi25 mum enlisted amount’’.
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•HR 2778 RH

1 (2) MAXIMUM ENLISTED AMOUNT.—Subsection

2 (c) of section 112 of such Code (relating to defini3 tions) is amended by adding at the end the following

4 new paragraph:

5 ‘‘(5) The term ‘maximum enlisted amount’

6 means, for any month, the sum of—

7 ‘‘(A) the highest rate of basic pay payable

8 for such month to any enlisted member of the

9 Armed Forces of the United States at the highest

10 pay grade applicable to enlisted members, and

11 ‘‘(B) in the case of an officer entitled to spe12 cial pay under section 310 of title 37, United

13 States Code, for such month, the amount of such

14 special pay payable to such officer for such

15 month.’’.

16 (e) EFFECTIVE DATE.—

17 (1) IN GENERAL.—Except as provided in para18 graph (2), the provisions of and amendments made by

19 this section shall take effect on November 21, 1995.

20 (2) WITHHOLDING.—Subsection (a)(5) and the

21 amendment made by subsection (c) shall apply to re22 muneration paid after the date of the enactment of

23 this Act.
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•HR 2778 RH

1 SEC. 2. EXTENSION OF INTERNAL REVENUE SERVICE USER

2 FEES.

3 Subsection (c) of section 10511 of the Revenue Act of

4 1987 is amended by striking ‘‘October 1, 2000’’ and by in5 serting ‘‘October 1, 2003’’.

6 Amend the title so as to read: ‘‘A bill to provide that

7 members of the Armed Forces performing services for the

8 peacekeeping efforts in Bosnia and Herzegovina, Croatia,

9 and Macedonia shall be entitled to tax benefits in the same

10 manner as if such services were performed in a combat

11 zone, and for other purposes.’’.