II 

109TH CONGRESS 

1ST SESSION S. 469 

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

the gain from the sale of a principal residence by certain employees 

of the intelligence community. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 28, 2005 

Mr. ROCKEFELLER (for himself, Mr. LOTT, Mr. ROBERTS, Ms. SNOWE, Mr. 

BAYH, Mr. CHAMBLISS, Ms. MIKULSKI, Mr. CORZINE, Mr. LEVIN, Mr. 

DEWINE, Mr. WYDEN, Mr. BOND, Mrs. FEINSTEIN, Mr. HAGEL, and 

Mr. HATCH) 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 the gain from the sale of a principal 

residence by certain employees of the intelligence community. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. EXCLUSION OF GAIN FROM SALE OF A PRIN4 CIPAL RESIDENCE BY CERTAIN EMPLOYEES 

5 OF THE INTELLIGENCE COMMUNITY. 

6 (a) IN GENERAL.—Subparagraph (A) of section 

7 121(d)(9) of the Internal Revenue Code (relating to exclu-
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•S 469 IS

1 sion of gain from sale of principal residence) is amended 

2 by striking ‘‘duty’’ and all that follows and inserting 

3 ‘‘duty— 

4 ‘‘(i) as a member of the uniformed 

5 services, 

6 ‘‘(ii) as a member of the Foreign 

7 Service of the United States, or 

8 ‘‘(iii) as an employee of the intel9 ligence community.’’. 

10 (b) EMPLOYEE OF INTELLIGENCE COMMUNITY DE11 FINED.—Subparagraph (C) of section 121(d)(9) of the In12 ternal Revenue Code of 1986 is amended by redesignating 

13 clause (iv) as clause (v) and by inserting after clause (iii) 

14 the following new clause: 

15 ‘‘(iv) EMPLOYEE OF INTELLIGENCE

16 COMMUNITY.—The term ‘employee of the 

17 intelligence community’ means an employee 

18 (as defined by section 2105 of title 5, 

19 United States Code) of— 

20 ‘‘(I) the Office of the Director of 

21 National Intelligence, 

22 ‘‘(II) the Central Intelligence 

23 Agency, 

24 ‘‘(III) the National Security 

25 Agency, 
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1 ‘‘(IV) the Defense Intelligence 

2 Agency, 

3 ‘‘(V) the National Geospatial-In4 telligence Agency, 

5 ‘‘(VI) the National Reconnais6 sance Office, 

7 ‘‘(VII) any other office within the 

8 Department of Defense for the collec9 tion of specialized national intelligence 

10 through reconnaissance programs, 

11 ‘‘(VIII) any of the intelligence 

12 elements of the Army, the Navy, the 

13 Air Force, the Marine Corps, the Fed14 eral Bureau of Investigation, the De15 partment of Treasury, the Depart16 ment of Energy, and the Coast 

17 Guard, 

18 ‘‘(IX) the Bureau of Intelligence 

19 and Research of the Department of 

20 State, or 

21 ‘‘(X) any of the elements of the 

22 Department of Homeland Security 

23 concerned with the analyses of foreign 

24 intelligence information.’’. 
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1 (c) SPECIAL RULE.—Subparagraph (C) of section 

2 121(d)(9) of the Internal Revenue Code of 1986, as 

3 amended by subsection (b), is amended by adding at the 

4 end the following new clause: 

5 ‘‘(vi) SPECIAL RULE RELATING TO IN6 TELLIGENCE COMMUNITY.—An employee 

7 of the intelligence community shall not be 

8 treated as serving on qualified extended 

9 duty unless— 

10 ‘‘(I) for purposes of such duty 

11 such employee has moved from 1 duty 

12 station to another, and 

13 ‘‘(II) at least 1 of such duty sta14 tions is located outside of the Wash15 ington, District of Columbia, and Bal16 timore metropolitan statistical areas 

17 (as defined by the Secretary of Com18 merce).’’. 

19 (d) CONFORMING AMENDMENT.—The heading for 

20 section 121(d)(9) of the Internal Revenue Code of 1986 

21 is amended to read as follows: ‘‘UNIFORMED SERVICES, 

22 FOREIGN SERVICE, AND INTELLIGENCE COMMUNITY’’. 

23 (e) EFFECTIVE DATE; SPECIAL RULE.— 

24 (1) EFFECTIVE DATE.—The amendments made 

25 by this section shall take effect as if included in the 
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1 amendments made by section 312 of the Taxpayer 

2 Relief Act of 1997. 

3 (2) WAIVER OF LIMITATIONS.—If refund or 

4 credit of any overpayment of tax resulting from the 

5 amendments made by this section is prevented at 

6 any time before the close of the 1-year period begin7 ning on the date of the enactment of this Act by the 

8 operation of any law or rule of law (including res ju9 dicata), such refund or credit may nevertheless be 

10 made or allowed if claim therefor is filed before the 

11 close of such period. 

Æ