II 

109TH CONGRESS 

2D SESSION S. 3959 

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 

SEPTEMBER 27, 2006 

Mr. WARNER (for himself and Mr. ALLEN) 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 22:42 Sep 28, 2006 Jkt 049196 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3959.IS S3959

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•S 3959 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.— 

6 ‘‘(1) IN GENERAL.—Gross income does not in7 clude so much of the compensation as does not ex8 ceed the maximum amount specified in subsection 

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

10 States for any month during any part of which such 

11 employee— 

12 ‘‘(A) served in a combat zone, or 

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

14 wounds, disease, or injury incurred while serv15 ing in a combat zone; but this paragraph shall 

16 not apply for any month beginning more than 

17 2 years after the date of the termination of 

18 combatant activities in such zone. 

19 ‘‘(2) DEFINITIONS.—For purposes of this sub20 section— 

21 ‘‘(A) EMPLOYEE.—The term ‘employee’ 

22 has the meaning given such term by section 

23 2105 of title 5, United States Code. 


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

2 service’ means active Federal service by an em3 ployee.’’. 

4 (b) CONFORMING AMENDMENTS.— 

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

6 by striking ‘‘112(c)’’ both places it appears and in7 serting ‘‘112(d)’’. 

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

9 is amended to read as follows: 

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

11 MEMBERS OF THE ARMED FORCES AND CI12 VILIAN EMPLOYEES OF THE UNITED 

13 STATES.’’. 

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

15 of sections for part III of subchapter B of chapter 

16 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.’’. 

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

18 this section shall apply to taxable years beginning after 

19 the date of the enactment of this Act. 

Æ 


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