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.
PL 106-21 (H.R.1376), enacted 04/19/1999

113 STAT. 34 
PUBLIC LAW 106-21—APR. 19, 1999 
Public Law 106-21 
106th Congress 
An Act 
A 
iq iQQQ 
'^° extend the tax benefits available with respect to services performed in a combat 
EI:—! 
zone to services performed in the Federal Republic of Yugoslavia (Serbia/Monte-
[H.R. 1376] 
negro) and certain other areas, and for other purposes. 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled, 
26 u s e 112 note. 
SECTION 1. AVAILABIUTY 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 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 any area 
of the Federal Republic of Yugoslavia (Serbia/Montenegro), Albania, 
the Adriatic Sea, and the northern Ionian Sea (above the 39th 
parallel) during the period (which includes the date of the enact-
ment 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 services 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 performing services as part of 
Operation Allied Force outside the United States while deployed 
PUBLIC LAW 106-21—APR. 19, 1999 
113 STAT. 35 
away from such individual's permanent duty station, the term 
"quaUfied hazardous 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 paragraph (2), this 
section shall take effect on March 24, 1999. 
(2) WiTHHOLDBSTG.—Subsection (a)(5) shall apply to remu-
neration paid after the date of the enactment of this Act. 
Approved April 19, 1999. 
LEGISLATIVE fflSTQRY—H.R. 1376 (S. 767): 
HOUSE REPORTS: No. 106-90 (Comm. on Ways and Means). 
CONGRESSIONAL RECORD, Vol. 145 (1999): 
Apr. 15, considered and passed House and Senate.