I
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.
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 ‘‘Military Tax Credit
Act of 2001’’.
SEC. 2. REFUNDABLE CREDIT FOR ACTIVE DUTY MEMBERS
OF THE ARMED FORCES.
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to refundable credits) is amended by redes-
ignating section 35 as section 36 and by inserting after
section 34 the following new section:
‘‘SEC. 35. ACTIVE DUTY MEMBERS OF THE ARMED FORCES.
‘‘(a) IN GENERAL.—In the case of an individual who
is an eligible member of the Armed Forces at any time
during the taxable year, there shall be allowed as a credit
against the tax imposed by this subtitle the amount deter-
mined under subsection (b).
‘‘(b) AMOUNT OF CREDIT.—
‘‘(1) IN GENERAL.—The amount of credit de-
termined under this subsection for a taxable year
is—
‘‘(A) except as otherwise provided in this
paragraph, $2,800,
‘‘(B) $4,000, in the case of a joint return,
‘‘(C) $2,000 in the case of a taxpayer
who—
‘‘(i) is married as of the close of the
taxable year (within the meaning of section
7703) but does not file a joint return for
such year, and
‘‘(ii) does not live apart from his
spouse at all times during the taxable year.
‘‘(2) PARTIAL YEARS.—In the case of an indi-
vidual who is an eligible member of the Armed
Forces for less than an entire taxable year, the
amount of credit determined under this subsection is
the amount which bears the same ratio to the
amount determined under paragraph (1) as the
number of days during the taxable year that the in-
dividual is such an eligible member bears to 365.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) ELIGIBLE
MEMBER
OF
THE
ARMED
FORCES.—The term ‘eligible member of the Armed
Forces’ means, with respect to any day, any officer
or enlisted member of the Armed Forces serving on
active duty on such day.
‘‘(2) ACTIVE
DUTY.—The term ‘active duty’
means active duty for a period of more than 30 days
or full-time National Guard duty.
‘‘(3) OTHER DEFINITIONS.—The terms ‘active
duty for a period of more than 30 days’, ‘Armed
Forces’, ‘enlisted member’, ‘full-time National Guard
duty’, and ‘officer’ have the meanings given such
terms in section 101 of title 10, United States
Code.’’
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (2) of section 1324(b) of title
31, United States Code, is amended by inserting be-
fore the period ‘‘, or from section 35 of such Code’’.
(2) The table of sections for subpart C of part
IV of subchapter A of chapter 1 of such Code is
amended by striking the last item and inserting the
following new items:
‘‘Sec. 35. Active duty members of the Armed Forces.
‘‘Sec. 36. Overpayments of tax.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
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