[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2068 Introduced in Senate (IS)]
108th CONGRESS
2d Session
S. 2068
To enhance and improve benefits for members of the National Guard and
Reserves who serve extended periods on active duty, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 12, 2004
Mrs. Murray (for herself, Mr. Leahy, and Mr. Reid) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To enhance and improve benefits for members of the National Guard and
Reserves who serve extended periods on active duty, 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. SHORT TITLE.
This Act may be cited as the ``Guard and Reserve Enhanced Benefits
Act of 2004''.
TITLE I--FAMILY ASSISTANCE BENEFITS
SEC. 101. MILITARY FAMILY LEAVE.
(a) General Requirements for Leave.--
(1) Definitions.--Section 101 of the Family and Medical
Leave Act of 1993 (29 U.S.C. 2611) is amended by adding at the
end the following:
``(14) Active duty.--The term `active duty' means duty
under a call or order to active duty under a provision of law
referred to in section 101(a)(13)(B) of title 10, United States
Code.
``(15) Qualified member.--The term `qualified member' means
a member of the reserve components on active duty for a period
of more than 30 days.''.
(2) Entitlement to leave.--Section 102(a)(1) of such Act
(29 U.S.C. 2612(a)) is amended by adding at the end the
following:
``(E) Because the spouse, son, daughter, or parent
of the employee is a qualified member.''.
(3) Schedule.--Section 102(b)(1) of such Act (29 U.S.C.
2612(b)(1)) is amended by inserting after the second sentence
the following: ``Leave under subsection (a)(1)(E) may be taken
intermittently or on a reduced leave schedule.''.
(4) Substitution of paid leave.--Section 102(d)(2)(A) of
such Act (29 U.S.C. 2612(d)(2)(A)) is amended by striking
``(A), (B), or (C)'' and inserting ``(A), (B), (C), or (E)''.
(5) Notice.--Section 102(e) of such Act (29 U.S.C. 2612(e))
is amended by adding at the end the following:
``(3) Notice for military family leave.--In any case in
which an employee seeks leave under subsection (a)(1)(E), the
employee shall provide such notice as is practicable.''.
(6) Certification.--Section 103 of such Act (29 U.S.C.
2613) is amended by adding at the end the following:
``(f) Certification for Military Family Leave.--An employer may
require that a request for leave under section 102(a)(1)(E) be
supported by a certification issued at such time and in such manner as
the Secretary may by regulation prescribe.''.
(b) Military Family Leave for Civil Service Employees.--
(1) Definitions.--Section 6381 of title 5, United States
Code, is amended--
(A) in paragraph (5), by striking ``and'' at the
end;
(B) in paragraph (6), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(7) the term `active duty' means duty under a call or
order to active duty under a provision of law referred to in
section 101(a)(13)(B) of title 10, United States Code; and
``(8) the term `qualified member' means a member of the
reserve components on active duty for a period of more than 30
days.''.
(2) Entitlement to leave.--Section 6382(a) of such title is
amended by adding at the end the following:
``(E) Because the spouse, son, daughter, or parent of the
employee is a qualified member.''.
(3) Schedule.--Section 6382(b)(1) of such title is amended
by inserting after the second sentence the following: ``Leave
under subsection (a)(1)(E) may be taken intermittently or on a
reduced leave schedule.''.
(4) Substitution of paid leave.--Section 6382(d) of such
title is amended by striking ``(A), (B), (C), or (D)'' and
inserting ``(A), (B), (C), (D), or (E)''.
(5) Notice.--Section 6382(e) of such title is amended by
adding at the end the following:
``(3) In any case in which an employee seeks leave under subsection
(a)(1)(E), the employee shall provide such notice as is practicable.''.
(6) Certification.--Section 6383 of such title is amended
by adding at the end the following:
``(f) An employing agency may require that a request for leave
under section 6382(a)(1)(E) be supported by a certification issued at
such time and in such manner as the Office of Personnel Management may
by regulation prescribe.''.
SEC. 102. CHILD CARE ASSISTANCE FOR MILITARY DEPENDENTS.
(a) Authorization of Appropriations.--Section 658B of the Child
Care and Development Block Grant Act of 1990 (42 U.S.C. 9858) is
amended--
(1) by striking ``There is'' and inserting ``(a) In
General.--There is'';
(2) in subsection (a), as so designated, by inserting
``(except section 658T)'' after ``this subchapter''; and
(3) by adding at the end the following:
``(b) Child Care for Certain Military Dependents.--There is
authorized to be appropriated to carry out section 658T $200,000,000
for each of fiscal years 2005 through 2009.''.
(b) Child Care Assistance.--The Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858 et seq.) is amended by adding at the
end the following:
``SEC. 658T. CHILD CARE ASSISTANCE FOR MILITARY DEPENDENTS.
``(a) In General.--The Secretary shall make grants to eligible
spouses to assist the spouses in paying for the cost of child care
services provided to dependents by eligible child care providers. In
making the grants, the Secretary shall give priority to eligible
spouses of qualified members on active duty for a period of more than 6
months.
``(b) Definitions.--In this section:
``(1) Active duty.--The term `active duty' means duty under
a call or order to active duty under a provision of law
referred to in section 101(a)(13)(B) of title 10, United States
Code.
``(2) Dependent.--The term `dependent' means an individual
who is--
``(A) a dependent, as defined in section 401 of
title 37, United States Code, except that such term
does not include a person described in paragraph (1) or
(3) of subsection (a) of such section; and
``(B) an individual described in subparagraphs (A)
and (B) of section 658P(4).
``(3) Eligible spouse.--The term `eligible spouse' means a
person who--
``(A) is a parent of one or more dependents of a
qualified member; and
``(B) has the primary responsibility for the care
of one or more such dependents.
``(4) Qualified member.--The term `qualified member' means
a member of the reserve components on active duty for a period
of more than 30 days.
``(c) Applications.--To be eligible to receive a grant under this
section, a spouse shall submit an application to the Secretary, at such
time, in such manner, and containing such information as the Secretary
may require, including a description of the eligible child care
provider who provides the child care services assisted through the
grant.
``(d) Rule.--The provisions of this subchapter, other than section
658P and provisions referenced in section 658P, that apply to
assistance provided under this subchapter shall not apply to assistance
provided under this section.''.
(c) Conforming Amendments.--Section 658O of the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9858m) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``appropriated
under this subchapter'' and inserting ``appropriated
under section 658B(a)''; and
(B) in paragraph (2), by striking ``appropriated
under section 658B'' and inserting ``appropriated under
section 658(a)''; and
(2) in subsection (b)(1), by striking ``appropriated under
section 658B'' and inserting ``appropriated under section
658(a)''.
TITLE II--EDUCATION BENEFITS
Subtitle A--Montgomery GI Bill Benefits
SEC. 201. BASIC EDUCATIONAL ASSISTANCE FOR MEMBERS OF SELECTED RESERVE
SERVING EXTENDED OR RECURRING PERIODS ON ACTIVE DUTY.
(a) Entitlement.--(1) Subsection (a)(1) of section 3011 of title
38, United States Code, is amended--
(A) in subparagraph (B), by striking ``or'' at the end;
(B) in subparagraph (C), by adding ``or'' at the end; and
(C) by adding at the end the following new subparagraph:
``(D) after September 11, 2001, while a member of
the Selected Reserve--
``(i) serves at least 12 months of
continuous active duty in the Armed Forces; or
``(ii) during any 60-month period, serves
an aggregate of 24 months of continuous active
duty in the Armed Forces;''.
(2) Subsection (d)(3) of such section is amended by striking ``The
period of service'' and inserting ``Except in the case of an individual
described in subsection (a)(1)(D), the period of service''.
(b) Exclusion From Contributions for Increased Assistance.--
Subsection (e)(1) of such section is amended by inserting ``(other than
an individual described in subsection (a)(1)(D)'' after ``Any
individual''.
(c) Amount of Assistance.--Section 3015(a) of such title is amended
by inserting after ``three years'' the following: ``or an individual
whose service on active duty on which such entitlement is based is
described in clause (i) or (ii) of section 3011(a)(1)(D) of this
title''.
SEC. 202. INCREASE IN AMOUNT OF EDUCATIONAL ASSISTANCE FOR MEMBERS OF
SELECTED RESERVE.
(a) Increase in Amounts.--Section 16131(b)(1) of title 10, United
States Code, is amended--
(1) in subparagraph (A), by striking ``$251'' and inserting
``$400'';
(2) in subparagraph (B), by striking ``$188'' and inserting
``$300''; and
(3) in subparagraph (C), by striking ``$125'' and inserting
``$200''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on the date of the enactment of this Act, and shall apply
with respect to monthly rates of educational assistance for months
beginning on or after that date.
SEC. 203. MODIFICATION OF TIME LIMITATION FOR USE OF ENTITLEMENT TO
EDUCATIONAL ASSISTANCE OF MEMBERS OF SELECTED RESERVE.
Section 16133(a)(2) of title 10, United States Code, is amended--
(1) by inserting ``that is five years after the date''
after ``on the date''; and
(2) by striking ``first'' and inserting ``later''.
Subtitle B--Other Education Benefits
SEC. 211. STUDENT LOAN DEFERMENTS.
(a) FFEL and Direct Subsidized Loans.--Section 428(b)(1)(M) of the
Higher Education Act of 1965 (20 U.S.C. 1078(b)(1)(M)) is amended--
(1) in clause (ii), by striking ``or'' after the semicolon;
(2) in clause (iii), by inserting ``or'' after the
semicolon; and
(3) by inserting after clause (iii) the following:
``(iv) during which the borrower is a
member of the reserve components of the Armed
Forces on active duty for a period of more than
30 days under a call or order to active duty
under a provision of law referred to in section
101(a)(13)(B) of title 10, United States Code,
and for 3 months following discharge or release
from such active duty.''.
(b) Consolidation Loans.--Section 428C(b)(4)(C)(ii) of the Higher
Education Act of 1965 (20 U.S.C. 1078-3(b)(4)(C)(ii)) is amended--
(1) in subclause (II), by striking ``or'' after the
semicolon;
(2) in subclause (III), by striking ``or (II)'' and
inserting ``, (II) or (III)'';
(3) by redesignating subclause (III) (as so amended) as
subclause (IV); and
(4) by inserting after subclause (II) the following:
``(III) by the Secretary, in the case of a
consolidation loan of a student who is on an active
duty deferment under section 428(b)(1)(M)(iv); or''.
(c) FFEL and Direct Unsubsidized Loans.--Section 428H(e)(2) of the
Higher Education Act of 1965 (20 U.S.C. 1078-8(e)(2)) is amended by
adding at the end the following:
``(C) Notwithstanding subparagraph (A), interest on loans
made under this section for which payments of principal are
deferred because the student is on an active duty deferment
under section 428(b)(1)(M)(iv) shall be paid by the
Secretary.''.
(d) Perkins Loans.--Section 464(c)(2)(A) of the Higher Education
Act of 1965 (20 U.S.C. 1087dd(c)(2)(A)) is amended--
(1) in clause (iii), by striking ``or'' after the
semicolon;
(2) in clause (iv), by inserting ``or'' after the
semicolon; and
(3) by inserting after clause (iv) the following:
``(v) during which the borrower is a member of the
reserve components of the Armed Forces on active duty
for a period of more than 30 days under a call or order
to active duty under a provision of law referred to in
section 101(a)(13)(B) of title 10, United States Code,
and for 3 months following discharge or release from
such active duty.''.
SEC. 212. PRESERVATION OF EDUCATIONAL STATUS AND TUITION.
(a) In General.--Title VII of the Servicemembers Civil Relief Act
(50 U.S.C. App. 501 et seq.), as amended by section 1 of Public Law
108-189 (117 Stat. 2835), is further amended by adding at the end the
following new section:
``SEC. 707. PRESERVATION OF EDUCATIONAL STATUS AND TUITION.
``(a) Leave of Absence.--A servicemember who is a member of the
reserve components on active duty for a period of more than 30 days
under a call or order to active duty under a provision of law referred
to in section 101(a)(13)(B) of title 10, United States Code, and who is
enrolled as a student at an institution of higher education at the time
of entry into the service on active duty, shall be granted a leave of
absence from the institution during the period of the service on active
duty and for one year after the conclusion of the service on active
duty.
``(b) Educational Status.--
``(1) In general.--A servicemember on a leave of absence
from an institution of higher education under subsection (a)
shall be entitled, upon completion of the leave of absence, to
be restored to the educational status the servicemember had
attained before entering into the service on active duty as
described in that subsection without loss of academic credits
earned, scholarships or grants awarded, or, subject to
paragraph (2), tuition and other fees paid before the entry of
the servicemember into the service on active duty.
``(2) Tuition.--
``(A) Refund.--An institution of higher education
shall refund tuition or fees paid or credit the tuition
and fees to the next period of enrollment after a
servicemember returns from the leave of absence, at the
option of the servicemember. Notwithstanding the 180-
day limitation referred to in subsection (a)(2)(B) of
section 484B of the Higher Education Act of 1965 (20
U.S.C. 1091b), a servicemember on a leave of absence
under this section shall not be treated as having
withdrawn for purposes of such section 484B unless the
servicemember fails to return upon the completion of
the leave of absence.
``(B) Amount of refund.--If a servicemember
requests a refund for a period of enrollment, the
percentage of the tuition and fees that shall be
refunded shall be equal to 100 percent minus--
``(i) the percentage of the period of
enrollment (for which the tuition and fees were
paid) that was completed (as determined in
accordance with subsection (d) of such section
484B) as of the day the servicemember withdrew,
provided that such date occurs on or before the
completion of 60 percent of the period of
enrollment; or
``(ii) 100 percent, if the day the person
withdrew occurs after the servicemember has
completed 60 percent of the period of
enrollment.''.
(b) Clerical Amendment.--The table of contents of that Act is
amended by adding at the end the following new item:
``Sec. 707. Preservation of educational status and tuition.''.
TITLE III--COMPENSATION AND RETIREMENT BENEFITS
SEC. 301. NONREDUCTION IN PAY FOR FEDERAL EMPLOYEES WHO ARE RESERVES
SERVING ON ACTIVE DUTY IN THE UNIFORMED SERVICES FOR
EXTENDED PERIODS.
(a) In General.--Subchapter IV of chapter 55 of title 5, United
States Code, is amended by adding at the end the following:
``Sec. 5538. Nonreduction in pay of Reserves on active duty in the
uniformed services for extended periods
``(a) An employee who is absent from a position of employment with
the Federal Government in order to perform active duty in the uniformed
services for a period of more than 30 days pursuant to a call or order
to active duty under a provision of law referred to in section
101(a)(13)(B) of title 10 shall be entitled, while serving on active
duty, to receive, for each pay period described in subsection (b), an
amount equal to the amount by which--
``(1) the amount of basic pay which would otherwise have
been payable to such employee for such pay period if such
employee's civilian employment with the Government had not been
interrupted by that service, exceeds (if at all)
``(2) the amount of pay and allowances which (as determined
under subsection (d))--
``(A) is payable to such employee for that service;
and
``(B) is allocable to such pay period.
``(b)(1) Amounts under this section shall be payable with respect
to each pay period (which would otherwise apply if the employee's
civilian employment had not been interrupted)--
``(A) during which such employee is entitled to
reemployment rights under chapter 43 of title 38 with
respect to the position from which such employee is
absent (as referred to in subsection (a)); and
``(B) for which such employee does not otherwise
receive basic pay (including by taking any annual,
military, or other paid leave) to which such employee
is entitled by virtue of such employee's civilian
employment with the Government.
``(2) For purposes of this section, the period during which an
employee is entitled to reemployment rights under chapter 43 of title
38--
``(A) shall be determined disregarding the provisions of
section 4312(d) of title 38; and
``(B) shall include any period of time specified in section
4312(e) of title 38 within which an employee may report or
apply for employment or reemployment following completion of
the service on active duty to which called or ordered as
described in subsection (a).
``(c) Any amount payable under this section to an employee shall be
paid--
``(1) by such employee's employing agency;
``(2) from the appropriation or fund which would be used to
pay the employee if such employee were in a pay status; and
``(3) to the extent practicable, at the same time and in
the same manner as would basic pay if such employee's civilian
employment had not been interrupted.
``(d) The Office of Personnel Management shall, in consultation
with Secretary of Defense, prescribe any regulations necessary to carry
out the preceding provisions of this section.
``(e)(1) The head of each agency referred to in section
2302(a)(2)(C)(ii) shall, in consultation with the Office, prescribe
procedures to ensure that the rights under this section apply to the
employees of such agency.
``(2) The Administrator of the Federal Aviation Administration
shall, in consultation with the Office, prescribe procedures to ensure
that the rights under this section apply to the employees of that
agency.
``(f) In this section--
``(1) the terms `employee', `Federal Government', and
`uniformed services' have the same respective meanings as given
them in section 4303 of title 38;
``(2) the term `employing agency', as used with respect to
an employee entitled to any payments under this section, means
the agency or other entity of the Government (including an
agency referred to in section 2302(a)(2)(C)(ii)) with respect
to which such employee has reemployment rights under chapter 43
of title 38; and
``(3) the term `basic pay' includes any amount payable
under section 5304.''.
(b) Technical and Conforming Amendment.--The table of sections for
chapter 55 of title 5, United States Code, is amended by inserting
after the item relating to section 5537 the following:
``5538. Nonreduction in pay of Reserves on active duty in the uniformed
services for extended periods.''
(c) Effective Date.--The amendments made by this section shall
apply with respect to pay periods (as described in section 5538(b) of
title 5, United States Code, as added by this section) beginning on or
after the date of enactment of this Act.
SEC. 302. CREDIT FOR INCOME DIFFERENTIAL FOR EMPLOYMENT OF ACTIVATED
MILITARY RESERVIST AND REPLACEMENT PERSONNEL.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to foreign tax credit,
etc.) is amended by adding at the end the following new section:
``SEC. 30B. EMPLOYER WAGE CREDIT FOR ACTIVATED MILITARY RESERVISTS.
``(a) General Rule.--There shall be allowed as a credit against the
tax imposed by this chapter for the taxable year an amount equal to the
sum of--
``(1) in the case of a small business employer, the
employment credit with respect to all qualified employees and
qualified replacement employees of the taxpayer, plus
``(2) the self-employment credit of a qualified self-
employed taxpayer.
``(b) Employment Credit.--For purposes of this section--
``(1) Qualified employees.--
``(A) In general.--The employment credit with
respect to a qualified employee of the taxpayer for any
taxable year is equal to the lesser of--
``(i) the excess, if any, of--
``(I) the qualified employee's
average daily qualified compensation
for the taxable year, over
``(II) the average daily military
pay and allowances received by the
qualified employee during the taxable
year,
while participating in qualified reserve
component duty to the exclusion of the
qualified employee's normal employment duties
for the number of days the qualified employee
participates in qualified reserve component
duty during the taxable year, including time
spent in a travel status, or
``(ii) $6,000.
The employment credit, with respect to all qualified
employees, is equal to the sum of the employment
credits for each qualified employee under this
subsection.
``(B) Average daily qualified compensation and
average daily military pay and allowances.--As used
with respect to a qualified employee--
``(i) the term `average daily qualified
compensation' means the qualified compensation
of the qualified employee for the taxable year
divided by the difference between--
``(I) 365, and
``(II) the number of days the
qualified employee participates in
qualified reserve component duty during
the taxable year, including time spent
in a travel status, and
``(ii) the term `average daily military pay
and allowances' means--
``(I) the amount paid to the
qualified employee during the taxable
year as military pay and allowances on
account of the qualified employee's
participation in qualified reserve
component duty, divided by
``(II) the total number of days the
qualified employee participates in
qualified reserve component duty,
including time spent in travel status.
``(C) Qualified compensation.--When used with
respect to the compensation paid or that would have
been paid to a qualified employee for any period during
which the qualified employee participates in qualified
reserve component duty, the term `qualified
compensation' means--
``(i) compensation which is normally
contingent on the qualified employee's presence
for work and which would be deductible from the
taxpayer's gross income under section 162(a)(1)
if the qualified employee were present and
receiving such compensation,
``(ii) compensation which is not
characterized by the taxpayer as vacation or
holiday pay, or as sick leave or pay, or as any
other form of pay for a nonspecific leave of
absence, and with respect to which the number
of days the qualified employee participates in
qualified reserve component duty does not
result in any reduction in the amount of
vacation time, sick leave, or other nonspecific
leave previously credited to or earned by the
qualified employee, and
``(iii) group health plan costs (if any)
with respect to the qualified employee.
``(D) Qualified employee.--The term `qualified
employee' means a person who--
``(i) has been an employee of the taxpayer
for the 91-day period immediately preceding the
period during which the employee participates
in qualified reserve component duty, and
``(ii) is a member of the Ready Reserve of
a reserve component of an Armed Force of the
United States as defined in sections 10142 and
10101 of title 10, United States Code.
``(2) Qualified replacement employees.--
``(A) In general.--The employment credit with
respect to a qualified replacement employee of the
taxpayer for any taxable year is equal to the lesser
of--
``(i) the individual's qualified
compensation attributable to service rendered
as a qualified replacement employee, or
``(ii) $6,000.
The employment credit, with respect to all qualified
replacement employees, is equal to the sum of the
employment credits for each qualified replacement
employee under this subsection.
``(B) Qualified compensation.--When used with
respect to the compensation paid to a qualified
replacement employee, the term `qualified compensation'
means--
``(i) compensation which is normally
contingent on the qualified replacement
employee's presence for work and which is
deductible from the taxpayer's gross income
under section 162(a)(1),
``(ii) compensation which is not
characterized by the taxpayer as vacation or
holiday pay, or as sick leave or pay, or as any
other form of pay for a nonspecific leave of
absence, and
``(iii) group health plan costs (if any)
with respect to the qualified replacement
employee.
``(C) Qualified replacement employee.--The term
`qualified replacement employee' means an individual
who is hired to replace a qualified employee or a
qualified self-employed taxpayer, but only with respect
to the period during which such employee or taxpayer
participates in qualified reserve component duty,
including time spent in travel status.
``(c) Self-Employment Credit.--For purposes of this section--
``(1) In general.--The self-employment credit of a
qualified self-employed taxpayer for any taxable year is equal
to the lesser of--
``(A) the excess, if any, of--
``(i) the self-employed taxpayer's average
daily self-employment income for the taxable
year over
``(ii) the average daily military pay and
allowances received by the taxpayer during the
taxable year, while participating in qualified
reserve component duty to the exclusion of the
taxpayer's normal self-employment duties for
the number of days the taxpayer participates in
qualified reserve component duty during the
taxable year, including time spent in a travel
status, or
``(B) $6,000.
``(2) Average daily self-employment income and average
daily military pay and allowances.--As used with respect to a
self-employed taxpayer--
``(A) the term `average daily self-employment
income' means the self-employment income (as defined in
section 1402(b)) of the taxpayer for the taxable year
plus the amount paid for insurance which constitutes
medical care for the taxpayer for such year (within the
meaning of section 162(l)) divided by the difference
between--
``(i) 365, and
``(ii) the number of days the taxpayer
participates in qualified reserve component
duty during the taxable year, including time
spent in a travel status, and
``(B) the term `average daily military pay and
allowances' means--
``(i) the amount paid to the taxpayer
during the taxable year as military pay and
allowances on account of the taxpayer's
participation in qualified reserve component
duty, divided by
``(ii) the total number of days the
taxpayer participates in qualified reserve
component duty, including time spent in travel
status.
``(3) Qualified self-employed taxpayer.--The term
`qualified self-employed taxpayer' means a taxpayer who--
``(A) has net earnings from self-employment (as
defined in section 1402(a)) for the taxable year, and
``(B) is a member of the Ready Reserve of a reserve
component of an Armed Force of the United States.
``(d) Coordination With Other Credits.--The amount of credit
otherwise allowable under sections 51(a) and 1396(a) with respect to
any employee shall be reduced by the credit allowed by this section
with respect to such employee.
``(e) Limitations.--
``(1) Application with other credits.--The credit allowed
under subsection (a) for any taxable year shall not exceed the
excess (if any) of--
``(A) the regular tax for the taxable year reduced
by the sum of the credits allowable under subpart A and
sections 27, 29, and 30, over
``(B) the tentative minimum tax for the taxable
year.
``(2) Disallowance for failure to comply with employment or
reemployment rights of members of the reserve components of the
armed forces of the united states.--No credit shall be allowed
under subsection (a) to a taxpayer for--
``(A) any taxable year, beginning after the date of
the enactment of this section, in which the taxpayer is
under a final order, judgment, or other process issued
or required by a district court of the United States
under section 4323 of title 38 of the United States
Code with respect to a violation of chapter 43 of such
title, and
``(B) the 2 succeeding taxable years.
``(3) Disallowance with respect to persons ordered to
active duty for training.--No credit shall be allowed under
subsection (a) to a taxpayer with respect to any period by
taking into account any person who is called or ordered to
active duty for any of the following types of duty:
``(A) Active duty for training under any provision
of title 10, United States Code.
``(B) Training at encampments, maneuvers, outdoor
target practice, or other exercises under chapter 5 of
title 32, United States Code.
``(C) Full-time National Guard duty, as defined in
section 101(d)(5) of title 10, United States Code.
``(f) General Definitions and Special Rules.--For purposes of this
section--
``(1) Small business employer.--
``(A) In general.--The term `small business
employer' means, with respect to any taxable year, any
employer who employed an average of 50 or fewer
employees on business days during such taxable year.
``(B) Controlled groups.--For purposes of
subparagraph (A), all persons treated as a single
employer under subsection (b), (c), (m), or (o) of
section 414 shall be treated as a single employer.
``(2) Military pay and allowances.--The term `military pay'
means pay as that term is defined in section 101(21) of title
37, United States Code, and the term `allowances' means the
allowances payable to a member of the Armed Forces of the
United States under chapter 7 of that title.
``(3) Qualified reserve component duty.--The term
`qualified reserve component duty' means active duty performed
for a period not less than 180 days under a call or order to
active duty under a provision of law referred to in section
101(a)(13)(B) of title 10, United States Code.
``(4) Carryback and carryforward allowed.--
``(A) In general.--If the credit allowable under
subsection (a) for a taxable year exceeds the amount of
the limitation under subsection (e)(1) for such taxable
year (in this paragraph referred to as the `unused
credit year'), such excess shall be a credit carryback
to each of the 3 taxable years preceding the unused
credit year and a credit carryforward to each of the 20
taxable years following the unused credit year.
``(B) Rules.--Rules similar to the rules of section
39 shall apply with respect to the credit carryback and
credit carryforward under subparagraph (A).
``(5) Certain rules to apply.--Rules similar to the rules
of subsections (c), (d), and (e) of section 52 shall apply.''.
(b) No Deduction for Compensation Taken Into Account for Credit.--
Section 280C(a) of the Internal Revenue Code of 1986 (relating to rule
for employment credits) is amended--
(1) by inserting ``or compensation'' after ``salaries'',
and
(2) by inserting ``30B,'' before ``45A(a)''.
(c) Conforming Amendment.--Section 55(c)(2) of the Internal Revenue
Code of 1986 is amended by inserting ``30B(e)(1),'' after
``30(b)(3),''.
(d) Clerical Amendment.--The table of sections for subpart B of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end 30A the following new item:
``Sec. 30B. Employer wage credit for
activated military
reservists.''.
(e) Effective Date.--The amendments made by this section shall
apply to amounts paid after the date of the enactment of this Act, in
taxable years ending after such date.
SEC. 303. REDUCED MINIMUM AGE FOR ELIGIBILITY FOR NON-REGULAR SERVICE
RETIRED PAY.
Section 12731(a)(1) of title 10, United States Code, is amended by
striking ``60 years of age'' and inserting ``55 years of age''.
TITLE IV--HEALTH CARE BENEFITS
SEC. 401. EXPANDED ELIGIBILITY OF READY RESERVE MEMBERS UNDER TRICARE
PROGRAM.
(a) Unconditional Eligibility.--Subsection (a) of section 1076b of
title 10, United States Code, is amended by striking ``and receive
benefits'' and all that follows through ``an employer-sponsored health
benefits plan''.
(b) Permanent Authority.--Subsection (l) of such section is
repealed.
(c) Conforming Amendments.--Such section is further amended--
(1) by striking subsections (i) and (j); and
(2) by redesignating subsection (k) as subsection (i).
SEC. 402. CONTINUATION OF NON-TRICARE HEALTH BENEFITS PLAN COVERAGE FOR
CERTAIN RESERVES CALLED OR ORDERED TO ACTIVE DUTY AND
THEIR DEPENDENTS.
(a) Required Continuation.--(1) Chapter 55 of title 10, United
States Code, is amended by inserting after section 1078a the following
new section:
``Sec. 1078b. Continuation of non-TRICARE health benefits plan coverage
for dependents of certain Reserves called or ordered to
active duty
``(a) Payment of Premiums.--The Secretary concerned shall pay the
applicable premium to continue in force any qualified health benefits
plan coverage for the members of the family of an eligible reserve
component member for the benefits coverage continuation period if
timely elected by the member in accordance with regulations prescribed
under subsection (g).
``(b) Eligible Member; Family Members.--(1) A member of a reserve
component is eligible for payment of the applicable premium for
continuation of qualified health benefits plan coverage under
subsection (a) while serving on active duty for a period of more than
30 days pursuant to a call or order issued under a provision of law
referred to in section 101(a)(13)(B) of this title during a war or a
national emergency declared by the President or Congress.
``(2) For the purposes of this section, the members of the family
of an eligible reserve component member include only the member's
dependents described in subparagraphs (A), (D), and (I) of section
1072(2) of this title.
``(c) Qualified Health Benefits Plan Coverage.--For the purposes of
this section, health benefits plan coverage for the members of the
family of a reserve component member called or ordered to active duty
is qualified health benefits plan coverage if--
``(1) the coverage was in force on the date on which the
Secretary notified the reserve component member that issuance
of the call or order was pending or, if no such notification
was provided, the date of the call or order;
``(2) on such date, the coverage applied to the reserve
component member and members of the family of the reserve
component member; and
``(3) the coverage has not lapsed.
``(d) Applicable Premium.--The applicable premium payable under
this section for continuation of health benefits plan coverage for the
family members of a reserve component member is the amount of the
premium payable by the member for the coverage of the family members.
``(e) Benefits Coverage Continuation Period.--The benefits coverage
continuation period under this section for qualified health benefits
plan coverage for the family members of an eligible reserve component
member called or ordered to active duty is the period that--
``(1) begins on the date of the call or order; and
``(2) ends at the end of the day on which the active duty
terminates.
``(f) Extension of Period of COBRA Coverage.--Notwithstanding any
other provision of law--
``(1) any period of coverage under a COBRA continuation
provision (as defined in section 9832(d)(1) of the Internal
Revenue Code of 1986) for an eligible reserve component member
under this section shall be deemed to be equal to the benefits
coverage continuation period for such member under this
section; and
``(2) with respect to the election of any period of
coverage under a COBRA continuation provision (as so defined),
rules similar to the rules under section 4980B(f)(5)(C) of such
Code shall apply.
``(g) Regulations.--The Secretary of Defense shall prescribe
regulations for carrying out this section. The regulations shall
include such requirements for making an election of payment of
applicable premiums as the Secretary considers appropriate.''.
(2) The table of sections at the beginning of such chapter is
amended by inserting after the item relating to section 1078a the
following new item:
``1078b. Continuation of non-TRICARE health benefits plan coverage for
dependents of certain Reserves called or
ordered to active duty.''.
(b) Applicability.--Section 1078b of title 10, United States Code
(as added by subsection (a)), shall apply with respect to calls or
orders of members of reserve components of the Armed Forces to active
duty as described in subsection (b) of such section, that are issued by
the Secretary of a military department before, on, or after the date of
the enactment of this Act, but only with respect to qualified health
benefits plan coverage (as described in subsection (c) of such section)
that is in effect on or after the date of the enactment of this Act.
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