I 
110TH CONGRESS 
1ST SESSION H. R. 3933 
To amend the Internal Revenue Code of 1986 to permanently extend the 
election to include combat pay as earned income for purposes of the 
earned income tax credit and penalty-free distributions from retirement 
plans to individuals called to active duty, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 23, 2007 
Ms. CLARKE 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 permanently 
extend the election to include combat pay as earned 
income for purposes of the earned income tax credit 
and penalty-free distributions from retirement plans to 
individuals called to active duty, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. ELECTION TO INCLUDE COMBAT PAY AS 
EARNED INCOME FOR PURPOSES OF EARNED 
INCOME TAX CREDIT MADE PERMANENT. 
(a) IN GENERAL.—Clause (vi) of section 32(c)(2)(B) 
of the Internal Revenue Code of 1986 (defining earned 
income) is amended to read as follows: 
‘‘(vi) a taxpayer may elect to treat 
amounts excluded from gross income by 
reason of section 112 as earned income.’’. 
(b) SUNSET NOT APPLICABLE.—Section 105 of the 
Working Families Tax Relief Act of 2004 (relating to ap-
plication of EGTRRA sunset to this title) shall not apply 
to section 104(b) of such Act. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years ending after De-
cember 31, 2007. 
SEC. 2. PENALTY-FREE DISTRIBUTIONS FROM RETIRE-
MENT PLANS TO INDIVIDUALS CALLED TO 
ACTIVE DUTY MADE PERMANENT. 
(a) IN GENERAL.—Clause (iv) of section 72(t)(2)(G) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘, and before December 31, 2007’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to individuals ordered or called to 
active duty on or after December 31, 2007. 
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SEC. 3. STATE ANNUITIES FOR BLIND VETERANS TO BE 
DISREGARDED 
IN 
DETERMINING 
SUPPLE-
MENTAL SECURITY INCOME BENEFITS. 
(a) INCOME DISREGARD.—Section 1612(b) of the So-
cial Security Act (42 U.S.C. 1382a(b)) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(22); 
(2) by striking the period at the end of para-
graph (23) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(24) any annuity paid by a State to the indi-
vidual (or such spouse) on the basis of the individ-
ual’s being a veteran (as defined in section 101 of 
title 38, United States Code) and blind.’’. 
(b) RESOURCE DISREGARD.—Section 1613(a) of 
such Act (42 U.S.C. 1382b(a)) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(14); 
(2) by striking the period at the end of para-
graph (15) and inserting ‘‘; and’’; and 
(3) by inserting after paragraph (15) the fol-
lowing: 
‘‘(16) for the month of receipt and every month 
thereafter, any annuity paid by a State to the indi-
vidual (or such spouse) on the basis of the individ-
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ual’s being a veteran (as defined in section 101 of 
title 38, United States Code) and blind.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall be effective with respect to benefits pay-
able for months beginning after 60 days after the date 
of the enactment of this Act 
Æ 
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