H.R. 3529

To amend the Internal Revenue Code of 1986 to make permanent law the treatment of tax-exempt combat pay as earned income for purposes of the earned income credit.

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I

110th CONGRESS

1st Session

H. R. 3529

IN THE HOUSE OF REPRESENTATIVES

September 14, 2007

Mrs. Boyda of Kansas (for herself, Mr. Barrow, Mr. Lampson, Ms. Shea-Porter, and Mr. Patrick J. Murphy of Pennsylvania) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to make permanent law the treatment of tax-exempt combat pay as earned income for purposes of the earned income credit.

1.

Permanent extension of special rule treating combat pay as earned income for earned income credit

(a)

In general

Clause (vi) of section 32(c)(2)(B) of the Internal Revenue Code of 1986 (relating to earned income) is amended to read as follows:

(vi)

a taxpayer may elect to treat amounts excluded from gross income by reason of section 112 as earned income.

.

(b)

Provision not subject to sunset

Section 105 of the Working Families Tax Relief Act of 2004 (relating to application of EGTRRA sunset to this title) shall not apply to section 104(b) of such Act.

(c)

Effective date

The amendment made by this section shall apply to taxable years ending after December 31, 2007.