II

107TH CONGRESS

1ST SESSION S. 1446

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

certain terrorist attack zone compensation of civilian uniformed personnel.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 21, 2001

Mr. ALLEN introduced the following bill; which was read twice and referred

to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to exclude

from gross income certain terrorist attack zone compensation of civilian uniformed personnel.

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 ‘‘Terrorist Response

5 Tax Exemption Act’’.

6 SEC. 2. EXCLUSION OF CERTAIN TERRORIST ATTACK ZONE

7 COMPENSATION OF CIVILIAN UNIFORMED

8 PERSONNEL.

9 (a) IN GENERAL.—Part III of subchapter B of chap10 ter 1 of the Internal Revenue Code of 1986 (relating to
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1 items specifically excluded from gross income) is amended

2 by inserting after section 112 the following new section:

3 ‘‘SEC. 112A. CERTAIN TERRORIST ATTACK ZONE COM4 PENSATION OF CIVILIAN UNIFORMED PER5 SONNEL.

6 ‘‘(a) IN GENERAL.—Gross income does not include

7 compensation received by a civilian uniformed employee

8 for any month during any part of which such employee

9 provides security, safety, fire management, or medical

10 services in a terrorist attack zone.

11 ‘‘(b) DEFINITIONS.—For purposes of this section—

12 ‘‘(1) CIVILIAN UNIFORMED EMPLOYEE.—The

13 term ‘civilian uniformed employee’ means any non14 military individual employed by a Federal, State, or

15 local government (or any agency or instrumentality

16 thereof) for the purpose of maintaining public order,

17 establishing and maintaining public safety, or re18 sponding to medical emergencies.

19 ‘‘(2) TERRORIST ATTACK ZONE.—The term

20 ‘terrorist attack zone’ means any area designated by

21 the President or any applicable State or local au22 thority (as determined by the Secretary) to be an

23 area in which occurred a violent act or acts which—
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1 ‘‘(A) were dangerous to human life and a

2 violation of the criminal laws of the United

3 States or of any State, and

4 ‘‘(B) would appear to be intended to in5 timidate or coerce a civilian population, influ6 ence the policy of a government by intimidation,

7 or affect the conduct of a government by assas8 sination or kidnapping.

9 ‘‘(3) COMPENSATION.—The term ‘compensa10 tion’ does not include pensions and retirement pay.’’.

11 (b) CONFORMING AMENDMENTS.—

12 (1) Section 3401(a)(1) of the Internal Revenue

13 Code of 1986 is amended by inserting ‘‘or section

14 112A (relating to certain terrorist attack zone com15 pensation of civilian uniformed personnel)’’ after

16 ‘‘United States)’’.

17 (2) The table of sections for part III of sub18 chapter B of chapter 1 of such Code is amended by

19 inserting after the item relating to section 112 the

20 following new item:

‘‘Sec. 112A. Certain terrorist attack zone compensation of civilian

uniformed personnel.’’.

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

22 this section shall apply to taxable years ending on or after

23 September 11, 2001.

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