H. R. 1376

One Hundred Sixth Congress

of the

United States of America

AT THE FIRST SESSION

Begun and held at the City of Washington on Wednesday,

the sixth day of January, one thousand nine hundred and ninety-nine

An Act

To extend the tax benefits available with respect to services performed in a combat

zone to services performed in the Federal Republic of Yugoslavia (Serbia/Montenegro) and certain other areas, 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. AVAILABILITY OF CERTAIN TAX BENEFITS FOR SERVICES

AS PART OF OPERATION ALLIED FORCE.

(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 any area

of the Federal Republic of Yugoslavia (Serbia/Montenegro), Albania,

the Adriatic Sea, and the northern Ionian Sea (above the 39th

parallel) during the period (which includes the date of the enactment of this Act) that 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

area.

(c) SPECIAL RULE FOR SECTION 7508.—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 Allied Force outside the United States while deployed
H. R. 1376—2

away from such individual’s permanent duty station, the term

‘‘qualified hazardous duty area’’ includes, during the period for

which the entitlement referred to in subsection (b) is in effect,

any area in which such services are performed.

(d) EFFECTIVE DATES.—

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

section shall take effect on March 24, 1999.

(2) WITHHOLDING.—Subsection (a)(5) shall apply to remuneration paid after the date of the enactment of this Act.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.