(B) in subparagraph (B)— 
(i) in clause (i), by inserting after 
‘‘service-connected 
disability,’’ 
the 
fol-
lowing: ‘‘by reason of a sole survivorship 
discharge (as that term is defined in sec-
tion 1174(i) of title 10),’’; and 
(ii) in clause (ii)— 
(I) by striking ‘‘, or (VI)’’ and 
inserting ‘‘, (VI)’’; and 
(II) by inserting before the pe-
riod at the end the following: ‘‘, or 
(VII) by reason of a sole survivorship 
discharge (as that term is defined in 
section 1174(i) of title 10)’’. 
SEC. 7. UNEMPLOYMENT COMPENSATION FOR MEMBERS 
OF THE ARMED FORCES WHO RECEIVE SOLE 
SURVIVORSHIP DISCHARGE. 
Section 8521(a)(1)(B)(ii)(III) of title 5, United 
States Code, is amended by striking ‘‘hardship,’’ and in-
serting ‘‘hardship (including pursuant to a sole survivor-
ship discharge, as that term is defined in section 1174(i) 
of title 10),’’.
SEC. 8. PREFERENCE-ELIGIBLE STATUS FOR MEMBERS OF 
THE ARMED FORCES WHO RECEIVE SOLE 
SURVIVORSHIP DISCHARGE. 
Section 2108(3) of title 5, United States Code, is 
amended— 
(1) in subparagraph (F), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (G), by inserting ‘‘and’’ at 
the end; and 
(3) by inserting after subparagraph (G) the fol-
lowing: 
‘‘(H) a veteran who was discharged or re-
leased from a period of active duty by reason of 
a sole survivorship discharge (as that term is 
defined in section 1174(i) of title 10);’’. 
SEC. 9. REPEAL OF DOLLAR LIMITATION ON CONTRIBU-
TIONS TO FUNERAL TRUSTS. 
(a) IN GENERAL.—Subsection (c) of section 685 of 
the Internal Revenue Code of 1986 (relating to treatment 
of funeral trusts) is repealed. 
(b) CONFORMING AMENDMENT.—Subsections (d), 
(e), and (f) of such section are redesignated as subsections 
(c), (d), and (e), respectively. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act.
SEC. 10. EFFECTIVE DATES. 
(a) RETROACTIVE EFFECTIVE DATE.—Except as 
provided in subsection (b) and section 9, this Act and the 
amendments made by this Act shall apply with respect to 
any sole survivorship discharge granted after September 
11, 2001. 
(b) DATE OF ENACTMENT EFFECTIVE DATE FOR 
CERTAIN AMENDMENTS.—The amendments made by sec-
tions 4,
7, and 8 shall apply with respect to any sole 
survivorship discharge granted after the date of the enact-
ment of this Act. 
(c) SOLE SURVIVORSHIP DISCHARGE DEFINED.—In 
this section, the term ‘‘sole survivorship discharge’’ means 
the separation of a member from the Armed Forces, at 
the request of the member, pursuant to the Department 
of Defense policy permitting the early separation of a 
member who is the only surviving child in a family in 
which— 
(1) the father or mother or one or more sib-
lings— 
(A) served in the Armed Forces; and 
(B) was killed, died as a result of wounds, 
accident, or disease, is in a captured or missing 
in action status, or is permanently 100 percent 
disabled or hospitalized on a continuing basis
(and is not employed gainfully because of the 
disability or hospitalization); and 
(2) the death, status, or disability did not result 
from the intentional misconduct or willful neglect of 
the parent or sibling and was not incurred during a 
period of unauthorized absence. 
Passed the House of Representatives July 29, 2008. 
Attest: 
Clerk.
110TH CONGRESS 
2D SESSION 
H. R. 6580 
AN ACT 
To ensure the fair treatment of a member of the 
Armed Forces who is discharged from the Armed 
Forces, at the request of the member, pursuant 
to the Department of Defense policy permitting 
the early discharge of a member who is the only 
surviving child in a family in which the father or 
mother, or one or more siblings, served in the 
Armed Forces and, because of hazards incident 
to such service, was killed, died as a result of 
wounds, accident, or disease, is in a captured or 
missing in action status, or is permanently dis-
abled, to amend the Internal Revenue Code of 
1986 to repeal the dollar limitation on contribu-
tions to funeral trusts, and for other purposes.