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107TH CONGRESS

1ST SESSION H. R. 1299

To amend the Internal Revenue Code of 1986 to allow a refundable credit

to members of the Armed Forces who serve on active duty during

a taxable year.

IN THE HOUSE OF REPRESENTATIVES

MARCH 29, 2001

Mr. CAPUANO (for himself, Mr. STUPAK, Mrs. THURMAN, Mr. KING, and Mr.

BRADY of Pennsylvania) introduced the following bill; which was referred

to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to allow a

refundable credit to members of the Armed Forces who

serve on active duty during a taxable year.

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 ‘‘Military Tax Credit

5 Act of 2001’’.

6 SEC. 2. REFUNDABLE CREDIT FOR ACTIVE DUTY MEMBERS

7 OF THE ARMED FORCES.

8 (a) IN GENERAL.—Subpart C of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of
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1 1986 (relating to refundable credits) is amended by redes2 ignating section 35 as section 36 and by inserting after

3 section 34 the following new section:

4 ‘‘SEC. 35. ACTIVE DUTY MEMBERS OF THE ARMED FORCES.

5 ‘‘(a) IN GENERAL.—In the case of an individual who

6 is an eligible member of the Armed Forces at any time

7 during the taxable year, there shall be allowed as a credit

8 against the tax imposed by this subtitle the amount deter9 mined under subsection (b).

10 ‘‘(b) AMOUNT OF CREDIT.—

11 ‘‘(1) IN GENERAL.—The amount of credit de12 termined under this subsection for a taxable year

13 is—

14 ‘‘(A) except as otherwise provided in this

15 paragraph, $2,800,

16 ‘‘(B) $4,000, in the case of a joint return,

17 ‘‘(C) $2,000 in the case of a taxpayer

18 who—

19 ‘‘(i) is married as of the close of the

20 taxable year (within the meaning of section

21 7703) but does not file a joint return for

22 such year, and

23 ‘‘(ii) does not live apart from his

24 spouse at all times during the taxable year.
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1 ‘‘(2) PARTIAL YEARS.—In the case of an indi2 vidual who is an eligible member of the Armed

3 Forces for less than an entire taxable year, the

4 amount of credit determined under this subsection is

5 the amount which bears the same ratio to the

6 amount determined under paragraph (1) as the

7 number of days during the taxable year that the in8 dividual is such an eligible member bears to 365.

9 ‘‘(c) DEFINITIONS.—For purposes of this section—

10 ‘‘(1) ELIGIBLE MEMBER OF THE ARMED

11 FORCES.—The term ‘eligible member of the Armed

12 Forces’ means, with respect to any day, any officer

13 or enlisted member of the Armed Forces serving on

14 active duty on such day.

15 ‘‘(2) ACTIVE DUTY.—The term ‘active duty’

16 means active duty for a period of more than 30 days

17 or full-time National Guard duty.

18 ‘‘(3) OTHER DEFINITIONS.—The terms ‘active

19 duty for a period of more than 30 days’, ‘Armed

20 Forces’, ‘enlisted member’, ‘full-time National Guard

21 duty’, and ‘officer’ have the meanings given such

22 terms in section 101 of title 10, United States

23 Code.’’

24 (b) CONFORMING AMENDMENTS.—
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1 (1) Paragraph (2) of section 1324(b) of title

2 31, United States Code, is amended by inserting be3 fore the period ‘‘, or from section 35 of such Code’’.

4 (2) The table of sections for subpart C of part

5 IV of subchapter A of chapter 1 of such Code is

6 amended by striking the last item and inserting the

7 following new items:

‘‘Sec. 35. Active duty members of the Armed Forces.

‘‘Sec. 36. Overpayments of tax.’’

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

9 this section shall apply to taxable years beginning after

10 December 31, 2000.

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