To provide that members of the Armed Forces performing services for the peacekeeping effort in the Republic of Bosnia and Herzegovina shall be entitled to certain tax benefits in the same manner as if such services were performed in a combat zone.
PL 104-117 (H.R.2778), enacted 03/20/1996

PUBLIC LAW 104-117—MAR. 20, 1996 
110 STAT. 827 
Public Law 104-117 
104th Congress 
An Act 
To provide that members of the Armed Forces performing services for the peacekeep-
ing efforts in Bosnia and Herzegovina, Croatia, and Macedonia shall be entitled 
Mar. 20, 1996 
to tax benefits in the same manner as if such services were performed in a 
[H R 2778] 
combat zone, and for other purposes. 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled, 
SECTION 1. TREATMENT OF CERTAIN INDIVIDUALS PERFORMING 
26USC112note. 
SERVICES IN CERTAIN HAZARDOUS DUTY AREAS. 
(a) GENERAL RULE.—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 individ-
ual is in missing status). 
(8) Section 7508 (relating to time for performing certain 
acts postponed by reason of service in combat zone). 
(b) QUALIFIED HAZi\RDOus DUTY AREA.—^For purposes of this 
section, the term "qualified hazardous duty area" means Bosnia 
and Herzegovina, Croatia, or Macedonia, 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 
country. Such term includes any such country only during the 
period such entitlement is in effect. Solely for purposes of applying 
section 7508 of the Internal Revenue Code of 1986, in the case 
of an individual who is performing services as part of Operation 
Joint Endeavor outside the United States while deployed away 
from such individual's permanent duty station, the term "qualified 
110 STAT. 828 
PUBLIC LAW 104-117—MAR. 20, 1996 
hazardous duty area" includes, during the period for which such 
entitlement is in effect, any area in which such services are per-
formed. 
(c) EXCLUSION OF COMBAT PAY FROM WITHHOLDING LIMITED 
TO AMOUNT EXCLUDABLE FROM GROSS INCOME.—Paragraph (1) of 
26USC340L 
section 3401(a) of the Internal Revenue Code of 1986 (defining 
wages) is amended by inserting before the semicolon the following: 
"to the extent remuneration for such service is excludable from 
gross income under such section". 
(d) INCREASE IN COMBAT PAY EXCLUSION FOR OFFICERS TO 
HIGHEST AMOUNT APPLICABLE TO ENLISTED PERSONNEL.— 
26 use 112. 
(1) IN GENERAL.—Subsection (b) of section 112 of such 
Code (relating to commissioned officers) is amended by striking 
"$500" and inserting "the maximum enlistod amount". 
(2) MAXIMUM ENLISTED AMOUNT.—Subsection (c) of section 
112 of such Code (relating to definitions) is amended by adding 
at the end the following new paragraph: 
"(5) The term 'maximum enlisted amount' means, for any 
month, the sum of— 
"(A) the highest rate of basic pay payable for such 
month to any enlisted member of the Armed Forces of 
the United States at the highest pay grade applicable to 
enlisted members, and 
"(B) in the case of an officer entitled to special pay 
under section 310 of title 37, United States Code, for such 
month, the amount of such special pay payable to such 
officer for such month.". 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
provisions of and amendments made by this section shall take 
effect on November 21, 1995. 
(2) WITHHOLDING.—Subsection (a)(5) and the amendment 
made by subsection (c) shall apply to remuneration paid after 
the date of the enactment of this Act. 
SEC. 2. EXTENSION OF INTERNAL REVENUE SERVICE USER FEES. 
26 use 7801 
Subsection (c) of section 10511 of the Revenue Act of 1987 
iiote. 
is amended by striking "October 1, 2000" and by inserting "October 
1, 2003". 
Approved March 20, 1996. 
LEGISLATIVE HISTORY—H.R. 2778: 
HOUSE REPORTS: No. 104-465 (Comm. on Ways and Means). 
CONGRESSIONAL RECORD, Vol. 142 (1996): 
Mar. 5, considered and passed House. 
Mar. 6, considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996): 
Mar. 20, Presidential statement.