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Union Calendar No. 50
106TH CONGRESS
1ST SESSION
H. R. 1376
[Report No. 106–90]
To extend the tax benefits available with respect to services performed in
a combat zone to services performed in the Federal Republic of Yugo-
slavia (Serbia/Montenegro) and certain other areas, and for other pur-
poses.
IN THE HOUSE OF REPRESENTATIVES
APRIL 13, 1999
Mr. ARCHER (for himself, Mr. RANGEL, Mr. CRANE, Mr. THOMAS, Mr. SHAW,
Mrs. JOHNSON of Connecticut, Mr. HOUGHTON, Mr. HERGER, Mr.
MCCRERY, Mr. CAMP, Mr. RAMSTAD, Mr. NUSSLE, Mr. SAM JOHNSON
of Texas, Ms. DUNN, Mr. COLLINS, Mr. PORTMAN, Mr. ENGLISH, Mr.
WATKINS, Mr. HAYWORTH, Mr. WELLER, Mr. HULSHOF, Mr. MCINNIS,
Mr. LEWIS of Kentucky, Mr. FOLEY, Mr. STARK, Mr. MATSUI, Mr.
COYNE, Mr. LEVIN, Mr. CARDIN, Mr. KLECZKA, Mr. LEWIS of Georgia,
Mr. NEAL of Massachusetts, Mr. MCNULTY, Mr. JEFFERSON, Mr. TAN-
NER, Mr. BECERRA, Mrs. THURMAN, Mr. DOGGETT, Mr. FOSSELLA, and
Mr. SWEENEY) introduced the following bill; which was referred to the
Committee on Ways and Means
APRIL 13, 1999
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Insert the part printed in italic]
A BILL
To extend the tax benefits available with respect to services
performed in a combat zone to services performed in
the Federal Republic of Yugoslavia (Serbia/Montenegro)
and certain other areas, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. AVAILABILITY OF CERTAIN TAX BENEFITS FOR
SERVICES AS PART OF OPERATION ALLIED
FORCE.
(a) GENERAL RULE.—For purposes of the following
provisions of the Internal Revenue Code of 1986, a quali-
fied hazardous duty area shall be treated in the same man-
ner as if it were a combat zone (as determined under sec-
tion 112 of such Code):
(1) Section 2(a)(3) (relating to special rule
where deceased spouse was in missing status).
(2) Section 112 (relating to the exclusion of
certain combat pay of members of the Armed
Forces).
(3) Section 692 (relating to income taxes of
members of Armed Forces on death).
(4) Section 2201 (relating to members of the
Armed Forces dying in combat zone or by reason of
combat-zone-incurred wounds, etc.).
(5) Section 3401(a)(1) (defining wages relating
to combat pay for members of the Armed Forces).
(6) Section 4253(d) (relating to the taxation of
phone service originating from a combat zone from
members of the Armed Forces).
(7) Section 6013(f)(1) (relating to joint return
where individual is in missing status).
(8) Section 7508 (relating to time for per-
forming certain acts postponed by reason of service
in combat zone).
(b) QUALIFIED HAZARDOUS DUTY AREA.—For pur-
poses of this section, the term ‘‘qualified hazardous duty
area’’ means any area of the Federal Republic of Yugo-
slavia (Serbia/Montenegro), Albania, the Adriatic Sea, and
the northern Ionian Sea (above the 39th parallel) during
the period (which includes the date of the enactment of
this Act) that any member of the Armed Forces of the
United States is entitled to special pay under section 310
of title 37, United States Code (relating to special pay:
duty subject to hostile fire or imminent danger) for serv-
ices performed in such area.
(c) SPECIAL RULE FOR SECTION 7508.—Solely for
purposes of applying section 7508 of the Internal Revenue
Code of 1986, in the case of an individual who is per-
forming services as part of Operation Allied Force outside
the United States while deployed away from such individ-
ual’s permanent duty station, the term ‘‘qualified haz-
ardous duty area’’ includes, during the period for which
the entitlement referred to in subsection (b) is in effect,
any area in which such services are performed.
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), this section shall take effect on March 24,
1999.
(2) WITHHOLDING.—Subsection (a)(5) shall
apply to remuneration paid after the date of the en-
actment of this Act.
Union Calendar No. 50
106TH CONGRESS
1ST SESSION
H. R. 1376
[Report No. 106–90]
A BILL
To extend the tax benefits available with respect to
services performed in a combat zone to services
performed in the Federal Republic of Yugoslavia
(Serbia/Montenegro) and certain other areas, and
for other purposes.
APRIL 13, 1999
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed