would continue to be entitled to if the member was 
not retired or separated. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Tax Relief and Ful-
filling Our Obligation to Patriotic Soldiers Act of 2007’’. 
SEC. 2. EXCLUSION FROM GROSS INCOME OF ENLISTMENT 
AND REENLISTMENT BONUSES FOR MEM-
BERS OF THE ARMED FORCES. 
(a) IN GENERAL.—Section 112 of the Internal Rev-
enue Code of 1986 (relating to certain combat zone com-
pensation of members of the Armed Forces) is amended 
by redesignating subsections (c) and (d) as subsections (d) 
and (e), respectively, and by inserting after subsection (b) 
the following new subsection: 
‘‘(c) QUALIFIED BONUS.—Gross income does not in-
clude a qualified bonus.’’. 
(b) QUALIFIED BONUS DEFINED.—Subsection (d) of 
section 112 of such Code (relating to definitions), as re-
designated by subsection (a), is amended by adding at the 
end the following new paragraph: 
‘‘(6) QUALIFIED BONUS.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
bonus’ means an enlistment, accession, reenlist-
ment, retention, incentive, or other bonus paid 
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by the Secretary concerned to a member of the 
Armed Forces of the United States in exchange 
for the agreement of the member to accept a 
commission as an officer, extend an active serv-
ice commitment as an officer, enlist, reenlist, or 
extend an enlistment as an enlisted member in 
an active or reserve component, or enter into a 
reserve affiliation agreement. 
‘‘(B) OTHER DEFINITIONS.—For purposes 
of subparagraph (A), the terms ‘active service’, 
‘enlisted member’, ‘officer’, and ‘Secretary con-
cerned’ have the meanings given to such terms 
in section 101 of title 10, United States Code.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 2201 of such Code is amended by 
striking ‘‘section 112(c)’’ both places it appears and 
inserting ‘‘section 112(d)’’. 
(2) The heading for section 112 of such Code 
is amended by inserting ‘‘AND
OTHER’’ before 
‘‘COMPENSATION’’. 
(3) Section 3401(a)(1) of such Code is amended 
by inserting ‘‘and other’’ before ‘‘compensation’’. 
(4) The table of sections for part III of sub-
chapter B of chapter 1 of such Code is amended by 
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striking the item relating to section 112 and insert-
ing the following new item: 
‘‘Sec. 112. Certain combat zone and other compensation of members of the 
Armed Forces.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2007. 
SEC. 3. CONTINUATION OF CERTAIN BONUS PAYMENTS TO 
MEMBERS OF THE ARMED FORCES RETIRED 
OR SEPARATED DUE TO A COMBAT-RELATED 
INJURY. 
(a) PAYMENT REQUIRED.—Chapter 17 of title 37, 
United States Code, is amended by inserting after section 
903 the following new section: 
‘‘§ 904. Continued payment of bonuses to members re-
tired or separated due to combat-related 
injuries 
‘‘(a) PAYMENT REQUIRED.—In the case of a member 
of the armed forces who is retired or separated for dis-
ability under chapter 61 of title 10, due to a combat-re-
lated injury, the Secretary of Defense shall require the 
continued payment to the member of any bonus described 
in subsection (b) that the member— 
‘‘(1) was entitled to immediately before the re-
tirement or separation of the member; and 
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‘‘(2) would continue to be entitled to if the 
member was not retired or separated. 
‘‘(b) COVERED BONUSES.—The bonuses referred to 
in subsection (a) are the following (numbers refer to the 
corresponding section in chapter 5 of this title): 
‘‘(1) 301b. Special pay for aviation career offi-
cers extending period of active duty. 
‘‘(2) 301d. Multiyear retention bonus for med-
ical officers of the armed forces. 
‘‘(3) 301e. Multiyear retention bonus for dental 
officers of the armed forces. 
‘‘(4) 302d. Accession bonus for registered 
nurses. 
‘‘(5) 302h. Accession bonus for dental officers. 
‘‘(6) 302j. Accession bonus for pharmacy offi-
cers. 
‘‘(7) 302k. Accession bonus for medical officers 
in critically short wartime specialties. 
‘‘(8) 302l. Accession bonus for dental specialist 
officers in critically short wartime specialties. 
‘‘(9) 308. Reenlistment bonus. 
‘‘(10) 308b. Reenlistment bonus for members of 
the Selected Reserve. 
‘‘(11) 308c. Bonus for affiliation or enlistment 
in the Selected Reserve. 
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‘‘(12) 308g. Bonus for enlistment in elements 
of the Ready Reserve other than the Selected Re-
serve. 
‘‘(13) 308h. Bonus for reenlistment, or vol-
untary extension of enlistment in elements of the 
Ready Reserve other than the Selected Reserve. 
‘‘(14) 308i. Prior service enlistment bonus. 
‘‘(15) 308j. Affiliation bonus for officers in the 
Selected Reserve. 
‘‘(16) 309. Enlistment bonus. 
‘‘(17) 312. Special pay for nuclear-qualified of-
ficers extending period of active duty. 
‘‘(18) 312b. Nuclear career accession bonus. 
‘‘(19) 312c. Nuclear career annual incentive 
bonus. 
‘‘(20) 315. Engineering and scientific career 
continuation pay. 
‘‘(21) 316. Bonus for members with foreign 
language proficiency. 
‘‘(22) 317. Special pay for officers in critical 
acquisition positions extending period of active duty. 
‘‘(23) 318. Special pay for special warfare offi-
cers extending period of active duty. 
‘‘(24) 319. Surface warfare officer continuation 
pay. 
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‘‘(25) 321. Judge advocate continuation pay. 
‘‘(26) 322. 15-year career status bonus for 
members entering service on or after August 1, 
1986. 
‘‘(27) 323. Retention incentives for members 
qualified in critical military skills or assigned to high 
priority units. 
‘‘(28) 324. Accession bonus for new officers in 
critical skills. 
‘‘(29) 326. Incentive bonus for conversion to 
military occupational specialty to ease personnel 
shortage. 
‘‘(30) 327. Incentive bonus for transfer between 
armed forces. 
‘‘(31) 329. Incentive bonus for retired members 
and reserve component members volunteering for 
high-demand, low-density assignments. 
‘‘(32) 330. Accession bonus for officer can-
didates. 
‘‘(c) TIME FOR PAYMENT.—A bonus required to be 
paid to a member under this section shall be paid to the 
member in a lump sum not later than 30 days after the 
date of the retirement or separation of the member, not-
withstanding any terms to the contrary in the agreement 
under which the bonus was originally authorized. 
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