Title: Sinai Service Recognition Act
Policy area: Taxation

Summary:
Sinai Service Recognition Act
This bill amends the Internal Revenue Code to require a qualified hazardous duty area to be treated in the same manner as a combat zone for certain tax provisions.
A "qualified hazardous duty area" is the Sinai Peninsula of Egypt if a member of the Armed Forces performs services in such location that qualify for special pay for duty subject to hostile fire or imminent danger.
The requirement applies to specified tax provisions relating to:

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 704 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                 S. 704

To provide that members of the Armed Forces performing services in the 
Sinai Peninsula of Egypt shall be entitled to tax benefits in the same 
      manner as if such services were performed in a combat zone.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 23, 2017

  Mr. Cornyn (for himself and Ms. Klobuchar) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To provide that members of the Armed Forces performing services in the 
Sinai Peninsula of Egypt shall be entitled to tax benefits in the same 
      manner as if such services were performed in a combat zone.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sinai Service Recognition Act''.

SEC. 2. TREATMENT OF CERTAIN INDIVIDUALS PERFORMING SERVICES IN THE 
              SINAI PENINSULA OF EGYPT.

    (a) In General.--For purposes of the following provisions of the 
Internal Revenue Code of 1986, a qualified hazardous duty area shall be 
treated in the same manner as if it were a combat zone (as determined 
under section 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 performing certain 
        acts postponed by reason of service in combat zone).
    (b) Qualified Hazardous Duty Area.--For purposes of this section, 
the term ``qualified hazardous duty area'' means the Sinai Peninsula of 
Egypt, if as of the date of the enactment of this section 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 services 
performed in such location. Such term includes such location only 
during the period such entitlement is in effect.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        provisions of this section shall take effect on June 9, 2015.
            (2) Withholding.--Subsection (a)(5) shall apply to 
        remuneration paid after the date of the enactment of this Act.
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