[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2942 Introduced in Senate (IS)]
108th CONGRESS
2d Session
S. 2942
To amend the Internal Revenue Code of 1986 to provide that combat pay
be treated as earned income for purposes of the earned income credit.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 7, 2004
Mr. Pryor (for himself, Mrs. Lincoln, Mr. Akaka, Mr. Baucus, Mr. Bayh,
Mr. Bingaman, Mrs. Boxer, Mr. Breaux, Ms. Cantwell, Mrs. Clinton, Mr.
Corzine, Mr. Daschle, Mr. Dayton, Mr. Dodd, Mr. Dorgan, Mr. Durbin, Mr.
Feingold, Mrs. Feinstein, Mr. Graham of Florida, Mr. Jeffords, Mr.
Johnson, Mr. Kennedy, Ms. Landrieu, Mr. Lautenberg, Mr. Leahy, Mr.
Levin, Mr. Lieberman, Ms. Mikulski, Mr. Miller, Mrs. Murray, Mr. Nelson
of Florida, Mr. Nelson of Nebraska, Mr. Reid, Mr. Rockefeller, Mr.
Sarbanes, Mr. Schumer, and Ms. Stabenow) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide that combat pay
be treated as earned income for purposes of the earned income credit.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. EARNED INCOME INCLUDES COMBAT PAY FOR PURPOSES OF EARNED
INCOME CREDIT.
(a) In General.--Subparagraph (B) of section 32(c)(2) of the
Internal Revenue Code of 1986 (relating to earned income) is amended--
(1) by striking ``and'' at the end of clause (iv),
(2) by striking the period at the end of clause (v) and
inserting ``, and'', and
(3) by adding at the end the following:
``(vi) a taxpayer may elect for any taxable
year to treat amounts excluded from gross
income by reason of section 112 as earned
income.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2005.
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