To create a reserve fund for extension of the treatment of combat pay as earned income for purposes of the earned income tax credit and the child tax credit.

1. Adds SEC. ___. RESERVE FUND FOR EXTENSION OF TREATMENT OF COMBAT PAY FOR EARNED INCOME AND CHILD TAX CREDITS at the end of title III

   Adds a section

   In S.Con.Res. 18 · Placed on Calendar Senate

   (b) Adjustment for Outlays.--In the Senate, for fiscal year 2006, and, as necessary, in subsequent fiscal years, if a bill or joint resolution is reported, or if an amendment is offered thereto or a conference report is submitted thereon that changes obligation limitations such that the total limitations are in excess of $42,686,000,000 for fiscal year 2006, for programs, projects, and activities for highways, highway safety, and transit, and if legislation has been enacted that satisfies the conditions set forth in subsection (a) for such fiscal year, the chairman of the Committee on the Budget may increase the allocation of outlays and appropriate aggregates for such fiscal year, and, as necessary, in subsequent fiscal years, for the committees reporting such measures, by the amount of outlays that corresponds to such excess obligation limitations, but not to exceed the amount of such excess that was offset in 2006 pursuant to subsection (a). After the adjustment has been made, the Senate Committee on Appropriations shall report new section 302(b) allocations consistent with this section.

   Inserted: SEC. ___. RESERVE FUND FOR EXTENSION OF TREATMENT OF COMBAT PAY FOR EARNED INCOME AND CHILD TAX CREDITS.

   Inserted: If the Committee on Finance reports a bill or joint resolution, or an amendment thereto is offered or a conference report thereon is submitted, that makes permanent the taxpayer election to treat combat pay otherwise excluded from gross income under section 112 of the Internal Revenue Code as earned income for purposes of the earned income credit and makes permanent the treatment of such combat pay as earned income for purposes of the child tax credit, provided that the Committee is within its allocation as provided under section 302(a) of the Congressional Budget Act of 1974, the Chairman of the Committee on the Budget may revise the allocations of budget authority and outlays, the revenue aggregates, and other appropriate measures, provided that such legislation would not increase the deficit for the period of fiscal year 2006 or the total of fiscal years 2006 though 2010.

   Original wording

   At the end of title III, insert:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed