104TH CONGRESS

2D SESSION H. R. 2778

AN ACT

To provide that members of the Armed Forces perbat zone, and for other purposes. ner as if such services were performed in a com- shall be entitled to tax benefits in the same man- Bosnia and Herzegovina, Croatia, and Macedonia forming services for the peacekeeping efforts in
104TH CONGRESS

2D SESSION H. R. 2778

AN ACT

To provide that members of the Armed Forces performing

services for the peacekeeping efforts in Bosnia and

Herzegovina, Croatia, and Macedonia shall be entitled

to tax benefits in the same manner as if such services

were performed in a combat zone, and for other purposes.
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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 quali8 fied hazardous duty area shall be treated in the same man9 ner as if it were a combat zone (as determined under sec10 tion 112 of such Code):

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

12 where deceased spouse was in missing status).

13 (2) Section 112 (relating to the exclusion of

14 certain combat pay of members of the Armed

15 Forces).

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

17 members of Armed Forces on death).

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

19 Armed Forces dying in combat zone or by reason of

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

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

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

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

24 phone service originating from a combat zone from

25 members of the Armed Forces).
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1 (7) Section 6013(f)(1) (relating to joint return

2 where individual is in missing status).

3 (8) Section 7508 (relating to time for perform4 ing certain acts postponed by reason of service in

5 combat zone).

6 (b) QUALIFIED HAZARDOUS DUTY AREA.—For pur7 poses of this section, the term ‘‘qualified hazardous duty

8 area’’ means Bosnia and Herzegovina, Croatia, or Mac9 edonia, if as of the date of the enactment of this section

10 any member of the Armed Forces of the United States

11 is entitled to special pay under section 310 of title 37,

12 United States Code (relating to special pay; duty subject

13 to hostile fire or imminent danger) for services performed

14 in such country. Such term includes any such country only

15 during the period such entitlement is in effect. Solely for

16 purposes of applying section 7508 of the Internal Revenue

17 Code of 1986, in the case of an individual who is perform18 ing services as part of Operation Joint Endeavor outside

19 the United States while deployed away from such individ20 ual’s permanent duty station, the term ‘‘qualified hazard21 ous duty area’’ includes, during the period for which such

22 entitlement is in effect, any area in which such services

23 are performed.

24 (c) EXCLUSION OF COMBAT PAY FROM WITHHOLD25 ING LIMITED TO AMOUNT EXCLUDABLE FROM GROSS IN-
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1 COME.—Paragraph (1) of section 3401(a) of the Internal

2 Revenue Code of 1986 (defining wages) is amended by in3 serting before the semicolon the following: ‘‘to the extent

4 remuneration for such service is excludable from gross in5 come under such section’’.

6 (d) INCREASE IN COMBAT PAY EXCLUSION FOR OF7 FICERS TO HIGHEST AMOUNT APPLICABLE TO ENLISTED

8 PERSONNEL.—

9 (1) IN GENERAL.—Subsection (b) of section

10 112 of such Code (relating to commissioned officers)

11 is amended by striking ‘‘$500’’ and inserting ‘‘the

12 maximum enlisted amount’’.

13 (2) MAXIMUM ENLISTED AMOUNT.—Subsection

14 (c) of section 112 of such Code (relating to defini15 tions) is amended by adding at the end the following

16 new paragraph:

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

18 means, for any month, the sum of—

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

20 for such month to any enlisted member of the

21 Armed Forces of the United States at the high22 est pay grade applicable to enlisted members,

23 and

24 ‘‘(B) in the case of an officer entitled to

25 special pay under section 310 of title 37, Unit-
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1 ed States Code, for such month, the amount of

2 such special pay payable to such officer for

3 such month.’’.

4 (e) EFFECTIVE DATE.—

5 (1) IN GENERAL.—Except as provided in para6 graph (2), the provisions of and amendments made

7 by this section shall take effect on November 21,

8 1995.

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

10 amendment made by subsection (c) shall apply to re11 muneration paid after the date of the enactment of

12 this Act.

13 SEC. 2. EXTENSION OF INTERNAL REVENUE SERVICE USER

14 FEES.

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

16 of 1987 is amended by striking ‘‘October 1, 2000’’ and

17 by inserting ‘‘October 1, 2003’’.

Passed the House of Representatives March 5,

1996.

Attest:

Clerk.