I 
108TH CONGRESS 
1ST SESSION H. R. 3365
To amend title 10, United States Code, and the Internal Revenue Code 
of 1986 to increase the death gratuity payable with respect to deceased 
members of the Armed Forces and to exclude such gratuity from gross 
income. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 21, 2003
Mr. RENZI (for himself, Mr. DELAY, and Mr. JONES of North Carolina) intro-
duced the following bill; which was referred to the Committee on Ways 
and Means, and in addition to the Committee on Armed Services, for a 
period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To amend title 10, United States Code, and the Internal 
Revenue Code of 1986 to increase the death gratuity 
payable with respect to deceased members of the Armed 
Forces and to exclude such gratuity from gross income.
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 ‘‘Fallen Patriots Tax 
Relief Act’’.
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) The tragic events of September 11, 2001, 
and subsequent worldwide combat operations in the 
Global War on Terrorism and in Operation Iraqi 
Freedom have highlighted the significant contribu-
tions of members of the Armed Forces in support of 
the national security of the United States and the 
sacrifices made by those members in the defense of 
freedom. 
(2) The sacrifices made by the members of the 
Armed Forces are significant and are worthy of 
meaningful expressions of gratitude by the Govern-
ment of the United States, especially in the case of 
sacrifice through loss of life. 
(3) The death gratuity payment made by the 
United States Government for deaths while in mili-
tary service has historically been tax exempt. 
(4) The military death gratuity payment should 
remain tax exempt in order to assist families of fall-
en patriots to continue their quality of life during 
their greatest time of need. 
(5) The Congress should periodically increase 
the amount of the military death gratuity payment 
to ensure that its value is not diminished.
SEC. 3. INCREASE IN DEATH GRATUITY PAYABLE WITH RE-
SPECT TO DECEASED MEMBERS OF THE 
ARMED FORCES. 
(a) 
AMOUNT
OF
DEATH
GRATUITY.—Section 
1478(a) of title 10, United States Code, is amended by 
striking ‘‘$6,000’’ and inserting ‘‘$12,000’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect as of September 11, 2001, 
and shall apply with respect to deaths occurring on or 
after that date. 
SEC. 4. RESTORATION OF FULL EXCLUSION FROM GROSS 
INCOME OF DEATH GRATUITY PAYMENT. 
(a) IN GENERAL.—Paragraph (3) of section 134(b) 
of the Internal Revenue Code of 1986 (relating to quali-
fied military benefit) is amended by adding at the end the 
following new subparagraph: 
‘‘(C) EXCEPTION
FOR
DEATH
GRATUITY 
ADJUSTMENTS MADE BY LAW.—Subparagraph 
(A) shall not apply to any adjustment to the 
amount of death gratuity payable under chapter 
75 of title 10, United States Code, which is 
pursuant to a provision of law enacted on or be-
fore the date of the enactment of this subpara-
graph.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
134(b)(3)(A) of such Code is amended by striking ‘‘sub-
paragraph (B)’’ and inserting ‘‘subparagraphs (B) and 
(C)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to deaths occurring 
after September 10, 2001.
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