I 
108TH CONGRESS 
1ST SESSION H. R. 2104
To amend the Internal Revenue Code of 1986 to exclude from gross income 
certain stipends paid as part of a State program under which individuals 
who have attained age 60 perform essentially volunteer services specified 
by the program. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 14, 2003
Mr. NEAL of Massachusetts (for himself, Mr. CAPUANO, Mr. DELAHUNT, and 
Mr. MARKEY) 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 exclude 
from gross income certain stipends paid as part of a 
State program under which individuals who have attained 
age 60 perform essentially volunteer services specified 
by the program.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. EXCLUSION FROM GROSS INCOME FOR STI-
PENDS RECEIVED FOR ESSENTIALLY VOLUN-
TEER 
SERVICES 
PERFORMED 
UNDER 
A 
STATE PROGRAM. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
items specifically excluded from gross income) is amended 
by inserting after section 139 the following new section: 
‘‘SEC. 139A. CERTAIN STIPENDS RECEIVED UNDER STATE 
PROGRAMS BY INDIVIDUALS WHO HAVE AT-
TAINED AGE 60. 
‘‘(a) IN GENERAL.—Gross income shall not include 
amounts received by an individual who has attained age 
60 from a qualified State program for services performed 
under such program. 
‘‘(b) QUALIFIED STATE PROGRAM.—For purposes of 
this section, the term ‘qualified State program’ means any 
program established by State law if—
‘‘(1) the program consists of assigning individ-
uals who have attained age 60 to perform volunteer 
services for nonprofit and nonsectarian entities, 
‘‘(2) the individuals participating in the pro-
gram must commit to performing volunteer services 
under the program for at least 48 hours a month, 
‘‘(3) the individuals receive no compensation 
other than from such program for such services,
‘‘(4) State law limits the maximum compensa-
tion that an individual may receive under the pro-
gram to the earnings limitation under section 203 of 
the Social Security Act, and 
‘‘(5) substantially all of the funds for such pro-
gram are provided by the State. 
‘‘(c) DENIAL OF CERTAIN DEDUCTIONS.—Unless the 
taxpayer elects not to have this section apply for any tax-
able year, no deduction shall be allowed under this chapter 
for any amount which is otherwise allowable as a deduc-
tion by reason of performing services under a qualified 
State program.’’
(b) EXCLUSION FROM EMPLOYMENT TAXES.—
(1)(A) Paragraph (18) of section 3121(a) of 
such Code is amended by striking ‘‘or 129’’ and in-
serting ‘‘, 129, or 139A’’. 
(B) Paragraph (15) of section 209(a) of the So-
cial Security Act is amended by striking ‘‘or 129’’ 
and inserting ‘‘, 129, or 139A’’. 
(2) Paragraph (13) of section 3306(b) of such 
Code is amended by striking ‘‘or 129’’ and inserting 
‘‘, 129, or 139A’’. 
(3) Paragraph (18) of section 3401(a) of such 
Code is amended by striking ‘‘or 129’’ and inserting 
‘‘, 129, or 139A’’.
(c) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter B of chapter 1 of such Code 
is amended by inserting after the item relating to section 
139 the following new item:
‘‘Sec. 139A. Certain stipends received under State programs by 
individuals who have attained age 60.’’
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2003.
Æ