H.R. 3933 – Reading Mode

110th CONGRESS

1st Session

H. R. 3933

IN THE HOUSE OF REPRESENTATIVES

October 23, 2007

Ms. Clarke 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 permanently extend the election to include combat pay as earned income for purposes of the earned income tax credit and penalty-free distributions from retirement plans to individuals called to active duty, and for other purposes.

Election to include combat pay as earned income for purposes of earned income tax credit made permanent

(a)

In general

Clause (vi) of section 32(c)(2)(B) of the Internal Revenue Code of 1986 (defining 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)

Sunset not applicable

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.

Penalty-free distributions from retirement plans to individuals called to active duty made permanent

(a)

In general

Clause (iv) of section 72(t)(2)(G) of the Internal Revenue Code of 1986 is amended by striking , and before December 31, 2007.

(b)

Effective date

The amendment made by this section shall apply to individuals ordered or called to active duty on or after December 31, 2007.

State annuities for blind veterans to be disregarded in determining supplemental security income benefits

(a)

Income disregard

Section 1612(b) of the Social Security Act (42 U.S.C. 1382a(b)) is amended—

(1)

by striking and at the end of paragraph (22);

(2)

by striking the period at the end of paragraph (23) and inserting ; and; and

(3)

by adding at the end the following:

(24)

any annuity paid by a State to the individual (or such spouse) on the basis of the individual’s being a veteran (as defined in section 101 of title 38, United States Code) and blind.

(b)

Resource disregard

Section 1613(a) of such Act (42 U.S.C. 1382b(a)) is amended—

(1)

by striking and at the end of paragraph (14);

(2)

by striking the period at the end of paragraph (15) and inserting ; and; and

(3)

by inserting after paragraph (15) the following:

(16)

for the month of receipt and every month thereafter, any annuity paid by a State to the individual (or such spouse) on the basis of the individual’s being a veteran (as defined in section 101 of title 38, United States Code) and blind.

(c)

Effective date

The amendments made by this section shall be effective with respect to benefits payable for months beginning after 60 days after the date of the enactment of this Act