II 

110TH CONGRESS 

1ST SESSION S. 1166 

To amend the Internal Revenue Code of 1986 to exclude from gross income 

certain combat zone compensation of civilian employees of the United States. 

IN THE SENATE OF THE UNITED STATES 

APRIL 19, 2007 

Mr. WARNER introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to exclude 

from gross income certain combat zone compensation 

of civilian employees of the United States. 

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 ‘‘Federal Employee 

5 Combat Zone Tax Parity Act’’. 

6 SEC. 2. EXCLUSION FROM GROSS INCOME FOR CERTAIN 

7 COMBAT ZONE COMPENSATION OF CIVILIAN 

8 EMPLOYEES OF THE UNITED STATES. 

9 (a) IN GENERAL.—Section 112 of the Internal Rev10 enue Code of 1986 (relating to certain combat zone comVerDate Aug 31 2005 01:55 Apr 21, 2007 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1166.IS S1166

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•S 1166 IS

1 pensation of members of the Armed Forces) is amended 

2 by redesignating subsections (c) and (d) as subsections (d) 

3 and (e), respectively, and by inserting after subsection (b) 

4 the following new subsection: 

5 ‘‘(c) CIVILIAN EMPLOYEES OF THE UNITED STATES

6 GOVERNMENT.— 

7 ‘‘(1) IN GENERAL.—Gross income does not in8 clude so much of the compensation as does not ex9 ceed the maximum amount specified in subsection 

10 (b) for active service as an employee of the United 

11 States for any month during any part of which such 

12 employee— 

13 ‘‘(A) served in a combat zone, or 

14 ‘‘(B) was hospitalized as a result of 

15 wounds, disease, or injury incurred while serv16 ing in a combat zone; but this subparagraph 

17 shall not apply for any month beginning more 

18 than 2 years after the date of the termination 

19 of combatant activities in such zone. 

20 ‘‘(2) DEFINITIONS.—For purposes of this sub21 section— 

22 ‘‘(A) EMPLOYEE OF THE UNITED

23 STATES.—The term ‘employee of the United 

24 States’ has the meaning given such term by 


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1 section 2105 of title 5, United States Code, and 

2 includes— 

3 ‘‘(i) an individual in the commissioned 

4 corps of the Public Health Service or the 

5 commissioned corps of the National Oce6 anic and Atmospheric Administration, and 

7 ‘‘(ii) an individual not otherwise de8 scribed in the preceding provisions of this 

9 subparagraph who is treated as an em10 ployee of the United States or an agency 

11 thereof for purposes of section 911(b). 

12 ‘‘(B) ACTIVE SERVICE.—The term ‘active 

13 service’ means active Federal service by an em14 ployee of the United States.’’. 

15 (b) CONFORMING AMENDMENTS.— 

16 (1) Section 2201(b) of such Code is amended 

17 by striking ‘‘112(c)’’ both places it appears and in18 serting ‘‘112(d)’’. 

19 (2) The heading for section 112 of such Code 

20 is amended to read as follows: 


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1 ‘‘SEC. 112. CERTAIN COMBAT ZONE COMPENSATION OF 

2 MEMBERS OF THE ARMED FORCES AND CI3 VILIAN EMPLOYEES OF THE UNITED 

4 STATES.’’. 

5 (3) The item relating to section 112 in the table 

6 of sections for part III of subchapter B of chapter 

7 1 of such Code is amended to read as follows: 

‘‘Sec. 112. Certain combat zone compensation of members of the Armed Forces 

and civilian employees of the United States.’’. 

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

9 this section shall apply to taxable years beginning after 

10 the date of the enactment of this Act. 

Æ 


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