I 
109TH CONGRESS 
2D SESSION 
H. R. 5920 
To amend the Internal Revenue Code of 1986 to exclude from gross income 
certain combat zone compensation of civilian employees of the United States. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 27, 2006 
Mr. WOLF (for himself, Mr. SCHWARZ of Michigan, Mr. TOM DAVIS of Vir-
ginia, Mr. MORAN of Virginia, Mr. VAN HOLLEN, Mr. HOYER, Mr. LIN-
COLN DIAZ-BALART of Florida, Mr. JONES of North Carolina, Ms. NOR-
TON, Mr. MCCOTTER, and Mr. SIMMONS) 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 combat zone compensation 
of civilian employees of the United States. 
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 ‘‘Federal Employee 
Combat Zone Tax Parity Act’’. 
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SEC. 2. EXCLUSION FROM GROSS INCOME FOR CERTAIN 
COMBAT ZONE COMPENSATION OF CIVILIAN 
EMPLOYEES OF THE UNITED STATES. 
(a) IN GENERAL.—Section 112 of the Internal Rev-
enue Code of 1986 (relating to certain combat zone com-
pensation of members of the Armed Forces) is amended 
by redesignating subsections (c) and (d) as subsections (d) 
and (e), respectively, and by inserting after subsection (b) 
the following new subsection: 
‘‘(c) CIVILIAN EMPLOYEES.— 
‘‘(1) IN GENERAL.—Gross income does not in-
clude so much of the compensation as does not ex-
ceed the maximum amount specified in subsection 
(b) for active service as an employee of the United 
States for any month during any part of which such 
employee— 
‘‘(A) served in a combat zone, or 
‘‘(B) was hospitalized as a result of 
wounds, disease, or injury incurred while serv-
ing in a combat zone; but this paragraph shall 
not apply for any month beginning more than 
2 years after the date of the termination of 
combatant activities in such zone. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
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‘‘(A) EMPLOYEE.—The term ‘employee’ 
has the meaning given such term by section 
2105 of title 5, United States Code. 
‘‘(B) ACTIVE SERVICE.—The term ‘active 
service’ means active Federal service by an em-
ployee.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 2201(b) of such Code is amended 
by striking ‘‘112(c)’’ both places it appears and in-
serting ‘‘112(d)’’. 
(2) The heading for section 112 of such Code 
is amended to read as follows: 
‘‘SEC. 112. CERTAIN COMBAT ZONE COMPENSATION OF 
MEMBERS OF THE ARMED FORCES AND CI-
VILIAN 
EMPLOYEES 
OF 
THE 
UNITED 
STATES.’’. 
(3) The item relating to section 112 in the table 
of sections for part III of subchapter B of chapter 
1 of such Code is amended to read as follows: 
‘‘Sec. 112. Certain combat zone compensation of members of the Armed Forces 
and civilian employees of the United States.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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