I 

108TH CONGRESS 

1ST SESSION H. R. 3365

To amend title 10, United States Code, and the Internal Revenue Code 

of 1986 to increase the death gratuity payable with respect to deceased 

members of the Armed Forces and to exclude such gratuity from gross 

income. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 21, 2003

Mr. RENZI (for himself, Mr. DELAY, and Mr. JONES of North Carolina) introduced the following bill; which was referred to the Committee on Ways 

and Means, and in addition to the Committee on Armed Services, for a 

period to be subsequently determined by the Speaker, in each case for 

consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL

To amend title 10, United States Code, and the Internal 

Revenue Code of 1986 to increase the death gratuity 

payable with respect to deceased members of the Armed 

Forces and to exclude such gratuity from gross income.

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 ‘‘Fallen Patriots Tax 

5 Relief Act’’.
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1 SEC. 2. FINDINGS. 

2 The Congress finds the following: 

3 (1) The tragic events of September 11, 2001, 

4 and subsequent worldwide combat operations in the 

5 Global War on Terrorism and in Operation Iraqi 

6 Freedom have highlighted the significant contribu7 tions of members of the Armed Forces in support of 

8 the national security of the United States and the 

9 sacrifices made by those members in the defense of 

10 freedom. 

11 (2) The sacrifices made by the members of the 

12 Armed Forces are significant and are worthy of 

13 meaningful expressions of gratitude by the Govern14 ment of the United States, especially in the case of 

15 sacrifice through loss of life. 

16 (3) The death gratuity payment made by the 

17 United States Government for deaths while in mili18 tary service has historically been tax exempt. 

19 (4) The military death gratuity payment should 

20 remain tax exempt in order to assist families of fall21 en patriots to continue their quality of life during 

22 their greatest time of need. 

23 (5) The Congress should periodically increase 

24 the amount of the military death gratuity payment 

25 to ensure that its value is not diminished. 
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1 SEC. 3. INCREASE IN DEATH GRATUITY PAYABLE WITH RE2 SPECT TO DECEASED MEMBERS OF THE 

3 ARMED FORCES. 

4 (a) AMOUNT OF DEATH GRATUITY.—Section 

5 1478(a) of title 10, United States Code, is amended by 

6 striking ‘‘$6,000’’ and inserting ‘‘$12,000’’. 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 subsection (a) shall take effect as of September 11, 2001, 

9 and shall apply with respect to deaths occurring on or 

10 after that date. 

11 SEC. 4. RESTORATION OF FULL EXCLUSION FROM GROSS 

12 INCOME OF DEATH GRATUITY PAYMENT. 

13 (a) IN GENERAL.—Paragraph (3) of section 134(b) 

14 of the Internal Revenue Code of 1986 (relating to quali15 fied military benefit) is amended by adding at the end the 

16 following new subparagraph: 

17 ‘‘(C) EXCEPTION FOR DEATH GRATUITY

18 ADJUSTMENTS MADE BY LAW.—Subparagraph 

19 (A) shall not apply to any adjustment to the 

20 amount of death gratuity payable under chapter 

21 75 of title 10, United States Code, which is 

22 pursuant to a provision of law enacted on or be23 fore the date of the enactment of this subpara24 graph.’’. 

25 (b) CONFORMING AMENDMENT.—Section 

26 134(b)(3)(A) of such Code is amended by striking ‘‘sub-
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1 paragraph (B)’’ and inserting ‘‘subparagraphs (B) and 

2 (C)’’. 

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

4 this section shall apply with respect to deaths occurring 

5 after September 10, 2001.

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