PUBLIC LAW 104–117—MAR. 20, 1996 110 STAT. 827

Public Law 104–117

104th Congress

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.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. TREATMENT OF CERTAIN INDIVIDUALS PERFORMING

SERVICES IN CERTAIN HAZARDOUS DUTY AREAS.

(a) GENERAL RULE.—For purposes of the following provisions

of the Internal Revenue Code of 1986, a qualified hazardous duty

area shall be treated in the same manner as if it were a combat

zone (as determined under section 112 of such Code):

(1) Section 2(a)(3) (relating to special rule where deceased

spouse was in missing status).

(2) Section 112 (relating to the exclusion of certain combat

pay of members of the Armed Forces).

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

Armed Forces on death).

(4) Section 2201 (relating to members of the Armed Forces

dying in combat zone or by reason of combat-zone-incurred

wounds, etc.).

(5) Section 3401(a)(1) (defining wages relating to combat

pay for members of the Armed Forces).

(6) Section 4253(d) (relating to the taxation of phone service

originating from a combat zone from members of the Armed

Forces).

(7) Section 6013(f)(1) (relating to joint return where individual is in missing status).

(8) Section 7508 (relating to time for performing certain

acts postponed by reason of service in combat zone).

(b) QUALIFIED HAZARDOUS DUTY AREA.—For purposes of this

section, the term ‘‘qualified hazardous duty area’’ means Bosnia

and Herzegovina, Croatia, or Macedonia, if as of the date of the

enactment of this section any member of the Armed Forces of

the United States is entitled to special pay under section 310

of title 37, United States Code (relating to special pay; duty subject

to hostile fire or imminent danger) for services performed in such

country. Such term includes any such country only during the

period such entitlement is in effect. Solely for purposes of applying

section 7508 of the Internal Revenue Code of 1986, in the case

of an individual who is performing services as part of Operation

Joint Endeavor outside the United States while deployed away

from such individual’s permanent duty station, the term ‘‘qualified

26 USC 112 note.

Mar. 20, 1996

[H.R. 2778]

110 STAT. 828 PUBLIC LAW 104–117—MAR. 20, 1996

LEGISLATIVE HISTORY—H.R. 2778:

HOUSE REPORTS: No. 104–465 (Comm. on Ways and Means).

CONGRESSIONAL RECORD, Vol. 142 (1996):

Mar. 5, considered and passed House.

Mar. 6, considered and passed Senate.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):

Mar. 20, Presidential statement.

Æ

hazardous duty area’’ includes, during the period for which such

entitlement is in effect, any area in which such services are performed.

(c) EXCLUSION OF COMBAT PAY FROM WITHHOLDING LIMITED

TO AMOUNT EXCLUDABLE FROM GROSS INCOME.—Paragraph (1) of

section 3401(a) of the Internal Revenue Code of 1986 (defining

wages) is amended by inserting before the semicolon the following:

‘‘to the extent remuneration for such service is excludable from

gross income under such section’’.

(d) INCREASE IN COMBAT PAY EXCLUSION FOR OFFICERS TO

HIGHEST AMOUNT APPLICABLE TO ENLISTED PERSONNEL.—

(1) IN GENERAL.—Subsection (b) of section 112 of such

Code (relating to commissioned officers) is amended by striking

‘‘$500’’ and inserting ‘‘the maximum enlisted amount’’.

(2) MAXIMUM ENLISTED AMOUNT.—Subsection (c) of section

112 of such Code (relating to definitions) is amended by adding

at the end the following new paragraph:

‘‘(5) The term ‘maximum enlisted amount’ means, for any

month, the sum of—

‘‘(A) the highest rate of basic pay payable for such

month to any enlisted member of the Armed Forces of

the United States at the highest pay grade applicable to

enlisted members, and

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

under section 310 of title 37, United States Code, for such

month, the amount of such special pay payable to such

officer for such month.’’.

(e) EFFECTIVE DATE.—

(1) IN GENERAL.—Except as provided in paragraph (2), the

provisions of and amendments made by this section shall take

effect on November 21, 1995.

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

made by subsection (c) shall apply to remuneration paid after

the date of the enactment of this Act.

SEC. 2. EXTENSION OF INTERNAL REVENUE SERVICE USER FEES.

Subsection (c) of section 10511 of the Revenue Act of 1987

is amended by striking ‘‘October 1, 2000’’ and by inserting ‘‘October

1, 2003’’.

Approved March 20, 1996.

26 USC 7801

note.

26 USC 112.

26 USC 3401.