I 
108TH CONGRESS 
1ST SESSION H. R. 1133
To amend the Internal Revenue Code of 1986 to provide a temporary exclu-
sion for members of reserve components of the Armed Forces and De-
partment of Defense civilian employees serving in a combat zone and 
to extend the exclusion for serving in a combat zone to Department 
of Defense civilian employees. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 6, 2003
Mr. JEFFERSON 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 provide 
a temporary exclusion for members of reserve compo-
nents of the Armed Forces and Department of Defense 
civilian employees serving in a combat zone and to extend 
the exclusion for serving in a combat zone to Department 
of Defense civilian employees.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. TEMPORARY EXCLUSION FOR RESERVISTS 
CALLED TO ACTIVE DUTY AND FOR DEPART-
MENT OF DEFENSE CIVILIAN EMPLOYEES 
SERVING IN A COMBAT ZONE. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 139 the following new section: 
‘‘SEC. 139A. TEMPORARY EXCLUSION FOR RESERVISTS 
CALLED TO ACTIVE DUTY AND FOR DEPART-
MENT OF DEFENSE CIVILIAN EMPLOYEES 
SERVING IN A COMBAT ZONE. 
‘‘(a) IN GENERAL.—In the case of an eligible indi-
vidual, if the amount excluded from gross income of the 
taxpayer by section 112 for an applicable taxable year 
does not exceed $40,000, gross income of the taxpayer 
shall be reduced (but not below zero) by the amount de-
scribed in subsection (b). 
‘‘(b) AMOUNT.—
‘‘(1) IN GENERAL.—If the exclusion referred to 
in subsection (a) does not exceed $30,000, the 
amount described in this subsection is the lesser 
of—
‘‘(A) $30,000, and 
‘‘(B) gross income (without regard to this 
section).
‘‘(2) PHASEOUT.—If the exclusion referred to 
in subsection (a) is over $30,000 but not over 
$40,000, the amount described in paragraph (1) 
shall be reduced (but not below zero)—
‘‘(A) by an amount which bears the same 
ratio to gross income (without regard to this 
section), as 
‘‘(B) the excess of the amount excluded 
from gross income by section 112 over $30,000 
bears to $10,000. 
‘‘(3) PART-YEAR SERVICE IN COMBAT ZONE.—
If the period of active duty with respect to a member 
of a reserve component or service in a combat zone 
with respect to a civilian employee of the Depart-
ment of Defense is less than an entire applicable 
taxable year, the amount described in this subsection 
shall be the same portion of the amount determined 
under paragraphs (1) and (2) such period bears to 
the entire taxable year. 
‘‘(c) ELIGIBLE INDIVIDUAL SERVING IN A COMBAT 
ZONE.—For purposes of this section—
‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 
individual’ means—
‘‘(A) any individual who is a member of a 
reserve component (as defined in section 101 of
title 37, United States Code) and who is or-
dered or called to active duty for a period of 
more than 30 days or for an indefinite period, 
and 
‘‘(B) a civilian employee of the Depart-
ment of Defense while such employee is serving 
in a combat zone. 
‘‘(2) EMPLOYEE.—The term ‘employee’ has the 
meaning given to such term by section 5561 of title 
5, United States Code, except that an individual 
shall not fail to be treated as an employee for pur-
poses of this section solely because such individual is 
a nonappropriated fund instrumentality employee 
(as defined in section 1587(a) of title 10, United 
States Code). 
‘‘(3) COMBAT ZONE.—The term ‘combat zone’ 
has the meaning given to such term by section 112. 
‘‘(d) APPLICABLE TAXABLE YEAR.—The term ‘appli-
cable taxable year’ means any taxable year beginning in 
2003.’’
(b) 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. Temporary exclusion for reservists called to active 
duty and for department of defense civilian employ-
ees serving in a combat zone.’’