I 

110TH CONGRESS 

1ST SESSION H. R. 1974 

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

certain combat zone compensation of civilian employees of the United States. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 19, 2007 

Mr. WOLF (for himself, Mr. FORTENBERRY, Mr. MORAN of Virginia, Mr. 

MCGOVERN, Mr. UPTON, Mr. HAYES, Ms. JACKSON-LEE of Texas, Mr. 

LINCOLN DIAZ-BALART of Florida, Mr. AKIN, Mr. BURTON of Indiana, 

Mr. ROGERS of Michigan, Mrs. MYRICK, Mr. GARRETT of New Jersey, 

Mrs. JO ANN DAVIS of Virginia, Mr. TOM DAVIS of Virginia, Ms. NORTON, Mr. VAN HOLLEN, and Mr. HOYER) 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 certain combat zone compensation 

of civilian employees of the United States. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Employee 

5 Combat Zone Tax Parity Act’’. 

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1 SEC. 2. EXCLUSION FROM GROSS INCOME FOR CERTAIN 

2 COMBAT ZONE COMPENSATION OF CIVILIAN 

3 EMPLOYEES OF THE UNITED STATES. 

4 (a) IN GENERAL.—Section 112 of the Internal Rev5 enue Code of 1986 (relating to certain combat zone com6 pensation of members of the Armed Forces) is amended 

7 by redesignating subsections (c) and (d) as subsections (d) 

8 and (e), respectively, and by inserting after subsection (b) 

9 the following new subsection: 

10 ‘‘(c) CIVILIAN EMPLOYEES OF THE UNITED STATES

11 GOVERNMENT.— 

12 ‘‘(1) IN GENERAL.—Gross income does not in13 clude so much of the compensation as does not ex14 ceed the maximum amount specified in subsection 

15 (b) for active service as an employee of the United 

16 States for any month during any part of which such 

17 employee— 

18 ‘‘(A) served in a combat zone, or 

19 ‘‘(B) was hospitalized as a result of 

20 wounds, disease, or injury incurred while serv21 ing in a combat zone; but this subparagraph 

22 shall not apply for any month beginning more 

23 than 2 years after the date of the termination 

24 of combatant activities in such zone. 

25 ‘‘(2) DEFINITIONS.—For purposes of this sub26 section— 

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1 ‘‘(A) EMPLOYEE OF THE UNITED

2 STATES.—The term ‘employee of the United 

3 States’ has the meaning given such term by 

4 section 2105 of title 5, United States Code, and 

5 includes— 

6 ‘‘(i) an individual in the commissioned 

7 corps of the Public Health Service or the 

8 commissioned corps of the National Oce9 anic and Atmospheric Administration, and 

10 ‘‘(ii) an individual not otherwise de11 scribed in the preceding provisions of this 

12 subparagraph who is treated as an em13 ployee of the United States or an agency 

14 thereof for purposes of section 911(b). 

15 ‘‘(B) ACTIVE SERVICE.—The term ‘active 

16 service’ means active Federal service by an em17 ployee of the United States.’’. 

18 (b) CONFORMING AMENDMENTS.— 

19 (1) Section 2201(b) of such Code is amended 

20 by striking ‘‘112(c)’’ both places it appears and in21 serting ‘‘112(d)’’. 

22 (2) The heading for section 112 of such Code 

23 is amended to read as follows: 

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•HR 1974 IH

1 ‘‘SEC. 112. CERTAIN COMBAT ZONE COMPENSATION OF 

2 MEMBERS OF THE ARMED FORCES AND CI3 VILIAN EMPLOYEES OF THE UNITED 

4 STATES.’’. 

5 (3) The item relating to section 112 in the table 

6 of sections for part III of subchapter B of chapter 

7 1 of such Code is amended to read as follows: 

‘‘Sec. 112. Certain combat zone compensation of members of the Armed Forces 

and civilian employees of the United States.’’. 

8 (c) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to taxable years beginning after 

10 the date of the enactment of this Act. 

Æ 

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