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Union Calendar No. 50

106TH CONGRESS

1ST SESSION H. R. 1376

[Report No. 106–90]

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.

IN THE HOUSE OF REPRESENTATIVES

APRIL 13, 1999

Mr. ARCHER (for himself, Mr. RANGEL, Mr. CRANE, Mr. THOMAS, Mr. SHAW,

Mrs. JOHNSON of Connecticut, Mr. HOUGHTON, Mr. HERGER, Mr.

MCCRERY, Mr. CAMP, Mr. RAMSTAD, Mr. NUSSLE, Mr. SAM JOHNSON

of Texas, Ms. DUNN, Mr. COLLINS, Mr. PORTMAN, Mr. ENGLISH, Mr.

WATKINS, Mr. HAYWORTH, Mr. WELLER, Mr. HULSHOF, Mr. MCINNIS,

Mr. LEWIS of Kentucky, Mr. FOLEY, Mr. STARK, Mr. MATSUI, Mr.

COYNE, Mr. LEVIN, Mr. CARDIN, Mr. KLECZKA, Mr. LEWIS of Georgia,

Mr. NEAL of Massachusetts, Mr. MCNULTY, Mr. JEFFERSON, Mr. TANNER, Mr. BECERRA, Mrs. THURMAN, Mr. DOGGETT, Mr. FOSSELLA, and

Mr. SWEENEY) introduced the following bill; which was referred to the

Committee on Ways and Means

APRIL 13, 1999

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Insert the part printed in italic]

A BILL

To extend the tax benefits available with respect to services

performed in a combat zone to services performed in
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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,

3 SECTION 1. AVAILABILITY OF CERTAIN TAX BENEFITS FOR

4 SERVICES AS PART OF OPERATION ALLIED

5 FORCE.

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

7 provisions of the Internal Revenue Code of 1986, a quali8 fied hazardous duty area shall be treated in the same man9 ner as if it were a combat zone (as determined under sec10 tion 112 of such Code):

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

12 where deceased spouse was in missing status).

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

14 certain combat pay of members of the Armed

15 Forces).

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

17 members of Armed Forces on death).

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

19 Armed Forces dying in combat zone or by reason of

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

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

22 to combat pay for members of the Armed Forces).
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1 (6) Section 4253(d) (relating to the taxation of

2 phone service originating from a combat zone from

3 members of the Armed Forces).

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

5 where individual is in missing status).

6 (8) Section 7508 (relating to time for per7 forming certain acts postponed by reason of service

8 in combat zone).

9 (b) QUALIFIED HAZARDOUS DUTY AREA.—For pur10 poses of this section, the term ‘‘qualified hazardous duty

11 area’’ means any area of the Federal Republic of Yugo12 slavia (Serbia/Montenegro), Albania, the Adriatic Sea, and

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

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

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

16 United States is entitled to special pay under section 310

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

18 duty subject to hostile fire or imminent danger) for serv19 ices performed in such area.

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

21 purposes of applying section 7508 of the Internal Revenue

22 Code of 1986, in the case of an individual who is per23 forming services as part of Operation Allied Force outside

24 the United States while deployed away from such individ25 ual’s permanent duty station, the term ‘‘qualified haz-
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1 ardous duty area’’ includes, during the period for which

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

3 any area in which such services are performed.

4 (d) EFFECTIVE DATES.—

5 (1) IN GENERAL.—Except as provided in para6 graph (2), this section shall take effect on March 24,

7 1999.

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

9 apply to remuneration paid after the date of the en10 actment of this Act.

Union Calendar No. 50

106TH CONGRESS

1ST SESSION H. R. 1376

[Report No. 106–90]

A BILL

To extend the tax benefits available with respect to

for other purposes.(Serbia/Montenegro) and certain other areas, andperformed in the Federal Republic of Yugoslaviaservices performed in a combat zone to services

APRIL 13, 1999

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union,