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106TH CONGRESS

1ST SESSION H. R. 1376

IN THE SENATE OF THE UNITED STATES

APRIL 15, 1999

Received

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. AVAILABILITY OF CERTAIN TAX BENEFITS FOR

2 SERVICES AS PART OF OPERATION ALLIED

3 FORCE.

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

5 provisions of the Internal Revenue Code of 1986, a quali6 fied hazardous duty area shall be treated in the same man7 ner as if it were a combat zone (as determined under sec8 tion 112 of such Code):

9 (1) Section 2(a)(3) (relating to special rule

10 where deceased spouse was in missing status).

11 (2) Section 112 (relating to the exclusion of

12 certain combat pay of members of the Armed

13 Forces).

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

15 members of Armed Forces on death).

16 (4) Section 2201 (relating to members of the

17 Armed Forces dying in combat zone or by reason of

18 combat-zone-incurred wounds, etc.).

19 (5) Section 3401(a)(1) (defining wages relating

20 to combat pay for members of the Armed Forces).

21 (6) Section 4253(d) (relating to the taxation of

22 phone service originating from a combat zone from

23 members of the Armed Forces).

24 (7) Section 6013(f)(1) (relating to joint return

25 where individual is in missing status).
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1 (8) Section 7508 (relating to time for per2 forming certain acts postponed by reason of service

3 in combat zone).

4 (b) QUALIFIED HAZARDOUS DUTY AREA.—For pur5 poses of this section, the term ‘‘qualified hazardous duty

6 area’’ means any area of the Federal Republic of Yugo7 slavia (Serbia/Montenegro), Albania, the Adriatic Sea, and

8 the northern Ionian Sea (above the 39th parallel) during

9 the period (which includes the date of the enactment of

10 this Act) that any member of the Armed Forces of the

11 United States is entitled to special pay under section 310

12 of title 37, United States Code (relating to special pay:

13 duty subject to hostile fire or imminent danger) for serv14 ices performed in such area.

15 (c) SPECIAL RULE FOR SECTION 7508.—Solely for

16 purposes of applying section 7508 of the Internal Revenue

17 Code of 1986, in the case of an individual who is per18 forming services as part of Operation Allied Force outside

19 the United States while deployed away from such individ20 ual’s permanent duty station, the term ‘‘qualified haz21 ardous duty area’’ includes, during the period for which

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

23 any area in which such services are performed.

24 (d) EFFECTIVE DATES.—
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1 (1) IN GENERAL.—Except as provided in para2 graph (2), this section shall take effect on March 24,

3 1999.

4 (2) WITHHOLDING.—Subsection (a)(5) shall

5 apply to remuneration paid after the date of the en6 actment of this Act.

Passed the House of Representatives April 15, 1999.

Attest: JEFF TRANDAHL,

Clerk.