I 

111TH CONGRESS 

1ST SESSION H. R. 1624 

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

income of members of the uniformed services of the United States certain 

amounts of military basic pay. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 19, 2009 

Mr. BILIRAKIS (for himself and Mr. CARNEY) 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 the gross income of members of the uniformed 

services of the United States certain amounts of military 

basic pay. 

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 ‘‘Military Personnel In5 come Tax Exclusion Act’’. 


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1 SEC. 2. EXCLUSION FROM GROSS INCOME FOR CERTAIN 

2 AMOUNTS OF BASIC PAY. 

3 (a) IN GENERAL.—Subsection (a) of section 134 of 

4 the Internal Revenue Code of 1986 (relating to exclusion 

5 for certain military benefits) is amended to read as fol6 lows: 

7 ‘‘(a) GENERAL RULE.—Gross income shall not in8 clude— 

9 ‘‘(1) any qualified military benefit, and 

10 ‘‘(2) so much of the basic pay received for ac11 tive service as a member of the uniformed services 

12 of the United States (which would, but for this para13 graph, be includible in gross income) to the extent 

14 that the rate of such pay does not exceed the highest 

15 rate payable for the E–1 pay grade.’’. 

16 (b) EXCLUDED AMOUNTS COUNTED AS INCOME FOR

17 CERTAIN PURPOSES.— 

18 (1) REFUNDABLE PORTION OF CHILD CRED19 IT.—Paragraph (1) of section 24(d) of such Code is 

20 amended by inserting ‘‘or 134(a)(2)’’ after ‘‘112’’. 

21 (2) EARNED INCOME CREDIT.—Clause (vi) of 

22 section 32(c)(2)(B) of such Code is amended by in23 serting ‘‘or 134(a)(2)’’ after ‘‘112’’. 

24 (3) MAKING WORK PAY CREDIT.—Paragraph 

25 (2) of section 36A(d) of such Code is amended by 

26 inserting ‘‘or 134(a)(2)’’ after ‘‘112’’. 


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1 (4) RETIREMENT SAVINGS.—Paragraph (7) of 

2 section 219(f) of such Code is amended to read as 

3 follows: 

4 ‘‘(7) SPECIAL RULE FOR CERTAIN COMPENSA5 TION EARNED BY MEMBERS OF THE ARMED

6 FORCES.—For purposes of subsections (b)(1)(B) and 

7 (c), the amount of compensation includible in an in8 dividual’s gross income shall be determined without 

9 regard to sections 112 and 134(a)(2).’’. 

10 (5) WITHHOLDING.—Paragraph (1) of section 

11 3401(a) of such Code is amended to read as follows: 

12 ‘‘(1) for active service performed in a month for 

13 which such employee is entitled to the benefits of 

14 section 112 (relating to certain combat zone com15 pensation of members of the Armed Forces of the 

16 United States) or section 134(a)(2) (relating to cer17 tain military benefits) to the extent remuneration for 

18 such service is excludable from gross income under 

19 section 112 or 134(a)(2), as the case may be.’’. 

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

21 this section shall apply to amounts paid after December 

22 31, 2008, in taxable years ending after such date. 

Æ 


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